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Chief financial officer of China's Huawei arrested in Canada
07 December 2018, 06:27 | Austin Hogan
Canada arrests Huawei CFO, to extradite her to US
Shares in Asia sank after news emerged that Canadian authorities had detained the mobile phone and tech firm's chief financial officer Meng Wanzhou in Vancouver, from where she is facing extradition.
The detention of Ms Meng threatens to scuttle the temporary detente reached by US President Donald Trump and his Chinese counterpart Xi Jinping at the G20 talks in Argentina to halt new trade tariffs for 90 days as the two countries negotiate.
That view is shared by other global security analysts after Canada's Justice Department said the U.S.is seeking Meng's extradition.
Earlier this year, the United States almost drove Huawei's biggest Chinese rival, ZTE Corp, out of business for selling equipment to North Korea and Iran in violation of U.S. sanctions.
She faces a bail hearing on Friday.
The Chinese embassy in Canada responded to news of Meng's arrest by lodging stern representations against the United States and Canadian governments and calling for her immediate release.
The Chinese embassy in Canada has also released a strongly worded statement.
Huawei Technologies Ltd., the biggest global supplier of network gear used by phone and Internet companies, has previously been the target of US security concerns.
The statement went on to say how Huawei complies with all applicable laws and regulations where it operates, "including applicable export control and sanction laws and regulations of the United Nations, US and European Union".
Huawei is one of the largest telecommunications equipment and services providers in the world, recently passing Apple to become the second-biggest smartphone maker after Samsung.
USA national security officials have said Huawei poses a security risk due to its alleged close links to the Chinese government.
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The Dow Jones fell more than 700 points on Thursday, as news broke of Huawei CFO Meng Wanzhou's arrest and planned extradition to the US.
Huawei said Ms Meng, the daughter of founder Ren Zhengfei, was detained while transferring between flights.
Huawei is one example of what the Trump Administration is targeting in its trade dispute with China. She is the chief financial officer of Huawei Technologies, a huge telecommunications company.
The arrest follows a U.S.
No one answered the door when Postmedia News visited the Dunbar home Thursday afternoon, but neighbourhood residents said they recognized Meng from media reports, though they did not want to talk on the record.
The electronics giant is doing well with smartphone sales outside of the US, but they, of course, could be even bigger if they were able to tap into this market.
"No matter what happens in the short term, (the arrest of Huawei's CFO) is a symptom of a long-term technology clash", said Derek Scissors, a China specialist at the conservative American Enterprise Institute.
The US has brought a number of legal cases against Chinese technology firms, with accusations such as cyber-security theft and violations of Iran sanctions.
He declined to talk about the specifics of the case and said he didn't know if Trump knew about before it happened but added that there has been enormous concern about the practice of Chinese firms like Huawei allegedly using stolen US intellectual property. Meng was detained in Vancouver on 1 December and faces extradition to the United States over reportedlinks to sanctions violations.
"Neither the United States nor Canada has made any clarification on the reason for the detention so far", he said. Markets are already incredibly nervous over slowing economic growth thanks to the inverted USA yield curve. Trump restored access after ZTE agreed to pay a $1 billion fine, replace its executive team and embed a USA -chosen compliance team in the company.
Meng, who also has used the English names Cathy and Sabrina, served on the board of Skycom between February 2008 and April 2009, according to Skycom records filed with Hong Kong's Companies Registry.
He declined to say whether it was in relation to sanctions against Iran.
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