US, China Look to Limit Impact of Tech Head's Arrest

Share

The United States is trying to stifle Chinese technology company Huawei and curb its global expansion with the arrest of a top executive, Chinese state media has said.

Meng Wanzhou, the chief financial officer of Chinese telecommunications giant Huawei, is wanted on alleged fraud charges in the United States, her bail hearing was told.

The governments of the UK, Australia and New Zealand have moved to prevent Huawei technology being used in their future 5G mobile phone networks, following a United States drive to stop its allies from purchasing from the company.

The arrest, revealed by Canadian authorities late on Wednesday, was part of a USA investigation into an alleged scheme to use the global banking system to evade American sanctions against Iran, sources say. SkyCom is believed to be an unofficial subsidiary of Huawei, though the companies do not claim to be connected.

The US Justice Department will have 60 days to request her extradition, which would have to be approved by the Canadian court.

Meng was arrested in Vancouver on December 1 while transferring planes on a trip from Hong Kong to Mexico, at the request of USA authorities seeking her extradition. United States authorities say the company has started recalling US-based employees who could serve as witnesses in the supposed Iran sanctions violations case, and executives began avoiding travel to America as early as April 2017, upon learning of the investigation.

Martin said at the meeting Meng had with a bank that was referred to in a story by Reuters, she explained Huawei owned Skycom for a period of time but it sold the company in 2009.

Her legal team countered that Ms. Meng would never "lose face" by embarrassing the company founded by her father and that she was willing to give up both her Chinese and Hong Kong passports as well as submit to high-level surveillance. "They had been warned, and finally we had to prosecute that", he said.

More news: New leaks tease Samsung’s final Galaxy S10 all-screen design

The Attorney General opposed Meng's release on bail.

The arrest of Meng Wanzhou fuelled concerns about already fraught relations between Washington and Beijing and the future of the trade talks.

It is within the context of the broader economic clash between two industrial powers, and the 90-day window allocated to resolve it, that Meng's arrest should be viewed, according to Marshall Mays, director of Emerging Alpha Advisors Limited. Meng also faces possible extradition from Canada. "Let's see who doesn't get a permit or which USA executive gets arrested", she said.

"Yes, I think we have to be anxious about those companies because they set new rules according with their IT companies, their producers", Ansip said.

Huawei, he explained, is one company the United States has been particularly concerned about.

Influential tabloid the Global Times, published by the ruling Communist Party's People's Daily, said that the USA was "resorting to a despicable rogue's approach as it can not stop Huawei's 5G advance in the market".

Several reporters from the USA and Canadian media organizations tweeted details of the accusations after the court lifted a publishing ban that had been in place since Meng's arrest.

Huawei staff briefed on an internal memo told Reuters on Friday the company had appointed Chairman Liang Hua as acting CFO following Meng's arrest.

Share