Huawei CFO arrested, faces extradition to U.S.

The Chinese Embassy in Canada has issued a statement over the arrest of Meng Wanzhou

The Chinese Embassy in Canada has issued a statement over the arrest of Meng Wanzhou

The U.S. Justice Department could not immediately be reached for comment. Markets are anxious by numerous things: "global economic growth, rising interest rates and the US/China trade war", said Russ Mould, investment director at AJ Bell. Investors stampeded for the safety of government debt, pushing the yield on the USA 10-year Treasury note back below 2.9 percent to its lowest level in three months. Combine Apple, Cisco, and Booz Allen, and then imagine this company working very closely with the US government, and you get a better sense of the significance of the company to China. Under Trump and his predecessor, Barack Obama, Washington has pressured European countries and other allies to limit use of its technology. Huawei has repeatedly insisted Beijing has no influence over it.

Justice Department spokesman Ian McLeod says in an email that Wanzhou Meng was arrested Saturday. Trump and Xi had dined in Argentina on December 1 at the G20 summit. "Huawei of course is a global player, and has made major inroads in developing countries, and even developed countries", Harwit said.

Huawei, in that statement, also said the company complies with all applicable US and Canadian laws.

She was detained when she was transferring flights in Canada, it added.

"We have made solemn representations to Canada and the United States, demanding that both parties immediately clarify the reasons for the detention, and immediately release the detainee to protect the person's legal rights", Chinese foreign ministry spokesman Geng Shuang told a regular press briefing in Beijing.

A statement posted to its website said China "firmly opposes and strongly protests over such kind of actions which seriously harmed the human rights of the victim".

Top White House officials are continuing to take a hard line on U.S. He also claimed that the incident "will seriously impact China and the US implementing consensus reached between two state leaders". A spokesman for the USA attorney's office in Brooklyn also declined to comment.

The news of Huawei CFO Meng Wanzhou's arrest sent shares sharply lower on fears of rising tensions between China and the U.S. The incident heightens concerns that the trade truce between President Donald Trump and his Chinese counterpart Xi Jinping won't hold, pushing the two economic powers into a trade war.

A ministry spokesman, Gao Feng, said China will promptly carry out their agreement and is confident they can reach a trade deal during the 90 days set by Trump to suspend USA tariff hikes.

"You can play hardball with a small country but you can't do it with the US", he said.

Ren responded: "We must not bind ourselves up just because the attacking us".

But news of Ms Meng's detention spooked sentiment on Thursday - leaving European and U.S. markets on course for steep falls at the open. -China trade negotiations weighed on big exporters Thursday. Zhang said the chances of a deal to address those issues just got slimmer following Meng's arrest.

The CFO, Wanzhou Meng, was arrested for allegedly breaching Iran sanctions. China has been exercising restraint, but the US can not act recklessly.

The export-oriented DAX .GDAX index, which has been weakened by concern trade tensions would curb growth in China's economy, fell 2.2 percent.

Earlier this year, it barred United States companies from exporting to ZTE, effectively shutting down the firm. "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.

It is not clear if Meng's arrest is connected to the U.S. probe into Huawei.

Huawei, along with many other Chinese phone manufacturers and telecom equipment makers, is viewed with significant suspicion by the "Five Eyes" intelligence alliance, comprised of Australia, Canada, New Zealand, the United Kingdom, and the United States.

Reuters in 2013 reported that Meng was linked to Skycom Tech, a Kong Kong-based company which in late 2010 offered to sell HP equipment worth at least $1.3 million euros to Iran-based Mobile Telecommunication Co.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.