ΧCanadian authorities have arrested Huawei chief financial officer Wanzhou Meng, daughter of the company's founder and president, Ren Zhengfei, while changing flights in Vancouver! This was done at the request of law enforcement from the United States. The latter with the East New York Prosecutor's Office accuse Meng of refraining from US sanctions against Iran.
Charges and embargo for espionage
Also today, the director of CSIS (Canadian Security Intelligence Service) warned Canadians of "state-sponsored espionage" in the ongoing 5G networks by the country's two largest providers Telus and Bell. Rogers, the third-largest provider, is testing 5G with Ericcson and no problem has been reported. The announcement comes shortly after New Zealand and Australia agreed to ban providers from buying Huawei telecommunications equipment due to data and communications security concerns.
Following the arrest, Huawei Global submitted a statement to the Mobile Syrup website regarding the current situation:
"Recently, our corporate CFO, Ms. Meng Wanzhou, was provisionally detained by the Canadian Authorities on behalf of the United States of America, which seeks the extradition of Ms. Meng Wanzhou to face unspecified charges in the Eastern District of New York, when she was transferring flights in Canada.
The company has been provided very little information regarding the charges and is not aware of any wrongdoing by Ms. Meng. 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. ”
ZTE was banned by the United States this year for violating sanctions against Iran until Trump and the Chinese government reached an agreement.
China should be fully prepared for an escalation in the #tradewar with the US, as the US will not ease its stance on China, and the recent arrest of the senior executive of #Huawei is a vivid example: Mei Xinyu, an expert close to the Chinese Ministry of Commerce pic.twitter.com/W4fp8YNfmD
- Global Times (@globaltimesnews) December 6, 2018
The arrest has shocked China and the stock market has plummeted internationally. We see escalation of the situation and certain financial loss to Huawei. The economic war between the two countries does not seem to end easily.
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