Huawei executive faces fraud charges in US

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USA prosecutors want a top executive of China's Huawei Technologies to face charges of fraud linked to the skirting of Iran sanctions, a Vancouver court heard on Friday.

Unlike a new round of tariffs or more tough rhetoric from USA officials, the detention of Meng, the company's chief financial officer, appears to have driven home the intensifying rivalry between the United States and China in a visceral way for the Chinese establishment - and may force Xi to adopt a tougher stance against Washington, analysts said.

"Skycom was Huawei. This is the alleged fraud", said Gibb-Carsley, representing the Attorney General of Canada. USA authorities say the company has started recalling US-based employees who could serve as witnesses in the supposed Iran sanctions violations case, and executives began avoiding travel to America as early as April 2017, upon learning of the investigation. Her hearing was adjourned until Monday.

Meng was arrested in Vancouver on Saturday en route to Mexico from Hong Kong.

He said his client would not flee because going against a court order would humiliate and embarrass her father, Huawei founder Ren Zhengfei. That information was passed on to federal prosecutors in the Eastern District of NY, the Journal report said.

Meng's arrest coincided with the signing of the truce agreement by Trump and Xi.

The hearing in Vancouver is the start of a long legal process in Canada that could end with Meng being sent to the U.S.to stand trial.

The US is by far Canada's top trading partner - but China comes in second.


China has expressed frustration with a provision in the new North American trade deal - the USMCA - that could deter deals with "non-market" countries.

"China talks", said Philip Levy, senior fellow at the Chicago Council on Global Affairs and an economic adviser in President George W. Bush's White House.

"It's not necessary to kill Huawei", said Cheng Xiaohe, professor of global relations at Renmin University.

Trump's shifting stance on the trade dispute also made signals confusing, Lau said.

Mr Navarro also said that if the United States and China could not come to an agreement during the 90-day negotiating period, U.S. officials would move forward with a strategy to raise tariffs.

He also responded to the idea that Meng could be found guilty in Canada for being in breach of sanctions the United States has imposed on Iran.

"We've had obligations that we've had to meet with the Canadian government and we've always met them, as has Huawei", Mr. Cope said, adding that BCE does not use Huawei equipment in its core network, "so I'm relaxed about it".

But Martin told the judge Meng is prominent and she would not violate a court order if she were released.


Since then, Huawei has grown into the world's biggest supplier of network gear for phone and internet companies.

Speaking of Ms Meng's arrest, Mr Navarro said the timing was "unusual" but that actions by Canada's justice department were "legitimate". "This is the culmination of what is likely to be a fairly lengthy investigation".

Wu Xinbo, a professor of worldwide studies at Fudan University, said many Chinese will see Meng's arrest as part of an attempt by the United States to force China to continue manufacturing low-end consumer goods and prevent it from moving up to produce more advanced and valuable products.

The United States has imposed tariffs on $250 billion in Chinese goods to pressure Beijing to change its ways.

Meng Wanzhou, Executive Board Director of the Chinese technology giant Huawei, attends a session of the VTB Capital Investment Forum "Russia Calling!" in Moscow, Russia, on October 2, 2014. "Let's see who doesn't get a permit or which USA executive gets arrested", she said.

The arrest also stroked fears of a potential backlash on American companies operating in China.

BCE and Telus have declined to reveal whether US national security officials have asked them to avoid Huawei equipment.

Pedestrians walk past a Huawei retail shop in Beijing Thursday, Dec. 6, 2018.


In a statement earlier this week, Huawei said the company complies with all laws and regulations in the countries where it operates, including applicable export control, sanction laws and regulations of the United Nations, the United States and the European Union. But Trump issued a reprieve, perhaps partly because USA tech companies, major suppliers to ZTE, would also have been scorched.

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