Published: Sun, December 09, 2018
World Media | By Shelia Harmon

Donald Trump Upbeat On China Talks; Aides Downplay Huawei Arrest Friction

Donald Trump Upbeat On China Talks; Aides Downplay Huawei Arrest Friction

Huawei chief financial officer Meng Wanzhou was arrested in Vancouver last Saturday and reportedly charged with fraud for telling UK-based banking company HSBC that the Chinese tech giant was in full compliance with United States sanctions against Iran while one of its subsidiaries was not in compliance of the restrictions. Numerous analyses in the Western press have reminded readers that its technological achievements are a source of tremendous pride among China's leaders and people, and that Meng, who is the daughter of Huawei founder Ren Zhengfei, is Chinese "corporate royalty".

At a hearing Friday in Vancouver, a Canadian prosecutor argued that Meng - who has spent most of the past week at a women's detention facility in a suburb of Vancouver - should be denied bail pending possible extradition to the United States because she was a flight risk.

The case was adjourned until Monday by Justice William Ehrcke to allow the defence more time to complete its submissions.

Meng is specifically accused of lying to a U.S. bank, identified by her lawyer as "Hong Kong Bank", about the use of a covert subsidiary to sell to Iran in breach of sanctions. A 2013 Reuters report said that SkyCom attempted to sell United States equipment to Iran despite USA and European Union bans.

In her dealings with the banks, Meng hid ties between Huawei and Skycom, when in fact Skycom employees worked for the Chinese telecom-equipment giant, Gibb-Carsley added.

He also alleged that there is evidence Meng has avoided the USA since she became aware of a criminal investigation into her activities.

Japan is expected to ban government use of products made by Huawei and ZTE over cybersecurity concerns, local media reported on Friday.

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She was arrested while changing planes in Vancouver and is facing extradition to the United States. Chinese state media have accused the U.S. of trying to "stifle" Huawei and curb its global expansion.

"You can trust her", he said. Until then, she will remain in custody.

A prosecutor disclosed that Meng was wanted by the United States for allegedly deceiving financial institutions about the relationship between Huawei and another tech company, SkyCom, based in Hong Kong, that is alleged to have sold USA -manufactured technology to Iran, in violation of US trade sanctions.

CNN, quoting an unnamed official, said the United States saw the arrest as providing leverage in US-China trade talks - although White House trade advisor Peter Navarro has denied any link to the dialogue.

Although there are some waivers, US Treasury Secretary Steven Mnuchin has said the US will "aggressively" target any firm or organisation "evading our sanctions". The editorial says the USA is "resorting to a despicable rogue's approach as it can not stop Huawei's 5G advance in the market" and "with the arrest, the U.S. is sending signals to the global community that it is targeting Huawei".

David Vigneault did not name China or Huawei in his speech, but he noted that "many of these advanced technologies are dual-use in nature in that they could advance a country's economic, security or military interests".

Martin added that Meng was willing to surrender her two valid passports to the RCMP. Even though the North American neighbors have a longstanding treaty governing extradition, it can take months, even years, for a defendant to be handed over, if at all.

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