Published: Thu, December 06, 2018
Business | By Eloise Houston

China's Huawei Technologies CFO arrested in Canada, faces extradition to US

China's Huawei Technologies CFO arrested in Canada, faces extradition to US

Huawei has yet to issue a statement regarding Wanzhou's arrest.

A USA judge last month issued an order finding that China's ZTE Corp violated probation imposed in March 2017 when the company pleaded guilty for conspiring to evade US sanctions by illegally shipping US goods and technology to Iran.

Authorities in Canada have arrested Meng Wanzhou, chief financial officer of Chinese tech giant Huawei.

US Justice Department spokesperson Ian McLeod said Meng was arrested in Vancouver on Saturday. According to Canadian government, Meng was arrested on December 1 by request of the United States, who is seeking to have her extradited.

The ministry added it could not provide further details due to a publication ban that was sought by Meng.

Meng, who was transferring flights in Canada when she was "provisionally detained", faces "unspecified charges" in the Eastern District of New York, Huawei said.

Officials for the Canadian and US Justice Departments did not immediately respond to a request for comment.

China's Huawei-the world's largest supplier of wireless networking equipment-has played a starring role in the brewing trade war between the United States and China. Its devices have come under scrutiny from U.S. authorities over spying fears, and the arrest of its CFO has the potential to further inflame tensions between the two countries amid a mounting trade war.

Wanzhou Meng has reportedly been arrested by Chinese authorities on suspicion of violating the US's trade sanctions on Iran.

Ms Meng is one of Huawei's top executives and its deputy chairman, as well as Mr Zhengfei's daughter. "The company believes the Canadian and US legal systems will ultimately reach a just conclusion", the statement said.

Australia and New Zealand have already turned down Huawei's offer to supply 5G equipment to telecommunication companies, citing security risks. Despite being essentially barred from the critical USA market, Huawei surpassed Apple to become the world's number two smartphone maker in the second quarter of this year and has market leader Samsung in its sights.

US authorities are investigating whether Chinese tech giant Huawei violated sanctions on Iran. BT still planned to use Huawei phone mast antennas and some other products from Huawei, it said.

However, earlier this year, the United States banned American firms from selling parts and software to ZTE for seven years, a move which brought the company to its knees.

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