Dow plunges 700 points after arrest of Chinese tech exec
- Author: Eleanor Harrison Dec 07, 2018,
Dec 07, 2018, 0:30
China reacted furiously Thursday after a top executive and daughter of the founder of Chinese telecom giant Huawei were arrested in Canada following a U.S. extradition request, threatening to rattle a trade war truce with the United States.
Meng, who is one of the vice chairs on the Chinese technology company's board and the daughter of company founder Ren Zhengfei, was arrested on December 1 and a court hearing has been set for Friday, a Canadian Justice Department spokesman said, according to the Globe and Mail.
Meanwhile, a clerk at the B.C. Supreme Court said Meng appeared in court Wednesday and a bail hearing is scheduled for Friday.
Justice Department spokesman Ian McLeod says in an email that Meng was arrested Saturday, but further details can not be provided because a publication ban is in effect at her request. Meng was detained in Vancouver but is facing potential extradition to the USA, which had earlier opened an investigation into whether Huawei sold equipment to Iran despite sanctions on exporting there.
China has demanded the release of a Huawei executive who was arrested in Canada in a case that adds to technology tensions with Washington and threatens to complicate trade talks.
The company also said it was "not aware of any wrongdoing" by Meng.
Eric Harwit, an Asian studies professor at the University of Hawaii at Manoa who has written extensively on Chinese telecoms, said the arrest was not just about sanctions violations but the bigger picture of the U.S. worrying about Chinese hi-tech firms becoming rivals to American companies in the future.
The Embassy of the People's Republic of China in Canada said that it resolutely opposes Meng's arrest and demands her immediate release.
'China has already made solemn representations to the United States and Canada, demanding they immediately correct their wrong behavior and restore Ms Meng Wanzhou's freedom'.
Meng Wanzhou's detention comes after American authorities reportedly launched an investigation into suspected Iran sanctions by Huawei, which was already under scrutiny by United States intelligence officials, who deemed the company a national security threat. "Huawei complies with all applicable laws and regulations where it operates, including applicable export control and sanction laws and regulations of the UN, US and EU", Huawei wrote in the statement.
Meng is the daughter of Huawei founder Ren Zhengfei, and also sits as the deputy chair of the global telco giant.
Huawei is one of the world's largest telecoms companies, and is the world's second-largest smartphone manufacturer behind Samsung. -China relations. Though Trump and Chinese President Xi Jinping announced a temporary truce in a tariffs war - with Trump agreeing to suspend USA tariff hikes for a period - a more permanent resolution is nowhere in sight.
Details of the arrest have not been released but the United States has been investigating Huawei over possible violation of sanctions against Iran. He said arresting her without that violated her human rights.
The Pentagon has alleged the Chinese government could use the phones to spy. American officials have sought to persuade other nations to curb business ventures with Huawei because of security concerns.
"I do think.the timing has a bearing on those talks in particular because Huawei is perhaps the most successful global company in China", said Mr Campling.
While Meng's arrest comes at a delicate time in U.S.
Huawei's close ties with the Chinese government sparked fears that Beijing could gain access to their networks, enabling it to gather intelligence in their countries, despite repeated denials from the company.
The probe of Huawei is similar to one that threatened the survival of China's ZTE Corp, which pleaded guilty in 2017 to violating USA laws that restrict the sale of American-made technology to Iran.
"We are full of confidence that China and the USA can reach an agreement within 90 days", the spokesman said Thursday.
The US began an investigation in 2016 to ascertain whether or not Huawei has violated American sanctions against Iran.
It's hard to overstate the size and importance of Huawei both within and outside of China, and how shocking this arrest is.
Hong Kong-listed ZTE, which was subject to a U.S. banning order earlier his year over security fears before that was reduced to a massive fine, was nearly five percent down.
- Espionage worries - Huawei is one of the world's largest telecommunications equipment and services providers.