ICT, Executive, Government - Huawei Exec Arrested In Canada
Canadian cops arrested the Chief Financial Officer of the Chinese tech giant Huawei for extradition to the United States, a move that is guaranteed to complicate trade negotiations between the US and China.
"Beijing is likely to react angrily to this latest arrest of a Chinese citizen in a third country for violating US law," analysts for the international consultancy The Eurasia Group wrote. "The arrest of the senior Huawei officials suggests that the gloves are now fully off in this arena, and US law enforcement officials have a green light from senior administration officials to pursue individuals the US may not have gone after in a more benign bilateral political climate."
Meng Wanzhou isn't just a company official, she's the daughter of Huawei's founder Ren Zhengfei and holds the positions of CFO as well as deputy chairman at the company. Her bail hearing has been set for Friday, but Canadian officials aren't saying why the US want her extradited to New York.
"The company has been provided very little information regarding the charges and is not aware of any wrongdoing by Ms. Meng," Huawei said. "The company believes the Canadian and US legal systems will ultimately reach a just conclusion. 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."
This might turned out to be an awful time to be a US or Canadian executive working in China, because Beijing is known for tit-for-tat arrests in situations like this.
"That's something we should be watching out for. It's a possibility. China plays rough," said the former Canadian Ambassador to China David Mulroney. "It's a prominent member of their society and it's a company that really embodies China's quest for global recognition as a technology power."
The US suspects Huawei of deep ties to China's spy agency, forbidding the sale Huawei mobile phones on US military base, and believes the company violated trade sanctions by selling technology to Iran.