Published: Fri, December 07, 2018
Business | By Eloise Houston

Trudeau says government had no involvement in arrest of top Huawei executive

Trudeau says government had no involvement in arrest of top Huawei executive

China reacted furiously Thursday after a top executive and daughter of the founder of Chinese telecom giant Huawei was arrested in Canada following a U.S. extradition request, threatening to rattle a trade war truce with the United States.

Chinese foreign ministry spokesman Geng Shuang told a daily briefing on Thursday that China had asked Canada and the United States for an explanation of Meng's arrest, but they have "not provided any clarification". He said neither Canada or the USA had so far responded to China's concerns. She is to appear in a Vancouver court on Friday for a bail hearing. The Globe and Mail newspaper, citing law enforcement sources, reported that Meng is suspected of trying to evade US sanctions on Iran.

USA authorities have been probing Huawei since at least 2016 for allegedly shipping US -origin products to Iran and other countries in violation of USA export and sanctions laws, sources told Reuters in April.

Huawei said in a statement Wednesday it has not been provided many details about Meng's arrest.

"Neither the USA nor Canada has made any clarification on the reason for the detention so far", he said.

Huawei derives around half of its revenue from supplying equipment to telecoms carriers around the world.

Worse still, the continuing negotiations in the US-China trade war have only been set aside in recent days on a temporary basis and this move is likely to be seen by China as extremely inflammatory to the talks.

In June 2014, Chinese businessman Su Bin was picked up on a USA warrant in Canada, where he had been attempting to establish residency. Chinese Commerce Ministry spokesman Gao Feng said China is confident it can reach a deal during the 90 days that Trump agreed to suspend a scheduled increase in US import taxes on $200 billion worth of Chinese products.

The recent trade sanctions from the USA on Huawei is getting much worse. "This is something that we get from the Justice Department", Bolton told National Public Radio.

United States senator Ben Sasse, a Republican member of the Senate Armed Services and Banking committees, said Huawei is an agent of China's communist party and applauded Canada for the arrest.

One report in the New York Times said the U.S. commerce and treasury departments had subpoenaed the firm over suspected violation of sanctions against both Iran and North Korea.

"The company has been provided very little information regarding the charges and is not aware of any wrongdoing by Ms. Meng", the statement said.

As Donald Trump and Xi Jinping's tariffs ceasefire last weekend - which sparked a one-day rally - fades to a distant memory, investors are back in selling mood as they fret over a range of issues including the state of the world economy, oil prices and Brexit.

Hu Xijin, editor-in-chief of the Global Times (one of China's most hawkish state-run newspapers), commented on his Twitter account that "The U.S. can't beat Huawei in the market". "Now we know that Huawei, like ZTE, has violated USA sanctions law".

If a USA target is in one those countries, one option for the OIA is to contact Interpol to put out what is known as a red notice indicating there is an outstanding arrest warrant for that person.

When Merritt said he was unable to attend the meeting, Chinese authorities threatened to arrest or detain the employees that InterDigital planned to send in Merritt's place, Reuters reported.

"China firmly opposes all forms of cyber attack and cracks down on them in accordance with law", he furthered.

Huawei recently surpassed Apple as the second-biggest smartphone maker, and is one of the largest telecommunications companies in the world.

A profile of Huawei's chief financial officer Meng Wanzhou is displayed on a Huawei computer at a store in Beijing on December 6, 2018.

The New York Times meanwhile said that the company had been subpoenaed by the Commerce and Treasury Departments over alleged violations of Iran and North Korea sanctions.

Mulroney said Canada should be prepared for "sustained fury" from the Chinese and said it will be portrayed in China as Canada kowtowing to Trump.

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