Huawei CFO arrested, faces extradition to U.S.

Huawei's global chief financial officer arrested in Vancouver

Huawei CFO arrested, faces extradition to U.S.

It's particularly worth noting that Meng was arrested on the same day that U.S. President Donald Trump and his Chinese counterpart Xi Jinping held a significant bilateral meeting in Buenos Aires, Argentina.

Republican Senator Ben Sasse said Americans were "grateful" to Canadian authorities for arresting Meng.

Both The Global And Mail and South China Morning Post previously reported that Meng had been arrested on suspicion of violating the US's trade sanctions on Iran.

Huawei recently surpassed Apple to become the world's second-biggest smartphone-maker behind only Samsung.

Meng's arrest has "potentially huge implications" for the trade war and signals the United States government is willing to get tough on Chinese companies that do business with Iran, according to Michael Every, head of Asia-Pacific research at investment bank Rabobank.

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

In 2012, the House of Representatives released a report warning Huawei poses a national security threat to the US, and American companies and its government should avoid doing business with the company. It has been locked out of the United States and some other markets for telecom gear.

Canadian Justice Department spokesman Ian McLeod said the seeking Meng's extradition, but couldn't provide further details about the case because of the publication ban in effect at Meng's request.

But after the pair met at the G20 on December 1, conflicting messages from Mr Trump over exactly what had been agreed sent markets sliding.

Huawei, which generated $93 billion in revenue a year ago, confirmed the arrest in a statement.

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

She was arrested while changing flights on Saturday.

Aly Song / Reuters A man walks by a Huawei logo at a shopping mall in Shanghai, China, Dec. 6.

"She was in transit though Vancouver".

Meng's arrested caused global markets to tumble and prompted a stern response from China, which has demanded her immediate release.

Her detention was made at the request of US authorities.

The U.S. Justice Department on Wednesday declined to comment.

China is demanding the release of telecoms giant Huawei's chief financial officer, who has been detained in Canada.

"The United States is stepping up containment of China in all respects", said Zhu Feng, an global relations expert at Nanjing University.

Meng's arrest comes as Ottawa and Beijing have been engaged in exploratory talks on a free trade agreement for the past two years, which would be the first deal of its kind between China and a western country.

Data showed the US trade deficit jumped to a 10-year high in October, suggesting the Trump administration's tariff-related measures to shrink the trade gap were ineffective.

Although Meng and Huawei are not well-known in the US, the executive and her company are extremely high profile in China.

This arrest could materially damage the relationship between the U.S. and China at possibly one of the most sensitive times between the two countries in their long and torrid history. "China is already asking for her release, as can be expected, but if the charges are serious, don't expect the United States to blink".

The arrest by Canadian authorities of Meng stems from an allegation that another company which she managed violated a US ban against selling technology to Iran. But ZTE (ZTCOF), a Chinese tech firm that was temporarily crippled by a USA export ban earlier this year, slumped almost 9%.

In a statement, Huawei said it had complied with "all applicable laws and regulations where it operates, including applicable export control and sanction laws and regulations of the UN, US and European Union".

It is not clear if Meng's arrest is connected to the USA probe into Huawei. Ren is a former Chinese military official who founded the company more than 30 years ago. Shares in Asian suppliers to Huawei, which also counts Qualcomm Inc and Intel among its major suppliers, tumbled on Thursday.

The arrest drew a quick reaction in Washington.

Latest News