How arrest of Huawei Technologies CFO extends troubled history with US

Huawei's chief financial officer Meng Wanzhou

Huawei's chief financial officer Meng Wanzhou

However, Trudeau confirmed that his government had been given several days notice about plans to arrest Meng, who is also the daughter of Huawei founder Ren Zhengfei and is now facing extradition to the United States following a scheduled bail hearing on Friday.

The detention of Meng Wanzhou, Huawei's chief financial officer, comes after American authorities reportedly launched an investigation into suspected Iran sanctions violations by Huawei, which was already under scrutiny by United States intelligence officials who deemed the company a national security threat.

"Americans are grateful that our Canadian partners have arrested the chief financial officer of a giant Chinese telecom company for (allegedly) breaking us sanctions against Iran", he said. Reuters was unable to determine the precise nature of the possible violations.

Some element of calm was restored in Asia on Wednesday after supportive comments from Beijing - its first reaction to hopes a new trade agreement between the U.S. and China could be reached within a 90-day deadline. Hong Kong's Hang Seng dropped 2.1 percent while Shanghai shares dropped 0.9 percent.

Both Huawei and ZTE have not only been barred from use by U.S. government agencies and contractors; they have also been mostly locked out of the American market. The nations are engaged in a trade war that has seen both impose duties of billions of dollars on one another's goods.

A new settlement was reached and the ban lifted at the behest of U.S. President Donald Trump, a perceived concession to Chinese President Xi Jinping that surprised and angered others in the U.S. government. Huawei has denied the links.

Meng was detained in Vancouver but is facing potential extradition to the USA, which had earlier opened an investigation into whether Huawei sold equipment to Iran despite sanctions on exporting there. Trump and Xi had dined in Argentina on December 1 at the G20 summit.

James McGregor, the greater China chairman of the public relations firm APCO, likens the situation to what it would be like if Chinese law enforcement suddenly arrested a relative of Apple CEO Tim Cook or Microsoft founder Bill Gates.

Her bio on the company website says Meng joined Huawei in 1993 and held various positions across the company, including director of worldwide accounting and CFO of Huawei Hong Kong.

The exact circumstances of her arrest were unclear.

"We have made solemn representations to Canada and the U.S., demanding that both parties immediately clarify the reasons for the detention, and immediately release the detainee to protect the person's legal rights", ministry spokesman Geng Shuang told a regular press briefing.

"If the Chinese need further convincing, this case would show them beyond doubt Trump's commitment", said Lam.

China's embassy in Canada has said it "opposes and strongly protests over such kind of actions which seriously harmed the human rights of the victim", which will raise more than a few eyebrows, given China's horrendous track record with human rights. The company's yearly financial report says the earnings come in equal part from business inside and outside the country.

The US Justice Department on Wednesday declined to comment. A spokesman for the US attorney's office in Brooklyn also declined to comment. Meng, it said, was "not violating any American or Canadian law".

"If someone from the United States is hoping to use threats to an individual's personal safety in order to add weight in the talks, then they have most certainly miscalculated", he said.

Is the arrest of Meng Wanzhou related to these security concerns?

"The rapidly dwindling good-feeling towards the USA and China's vague trade war ceasefire turned actively hostile on Thursday, investors fearing that, 90-day truce or not, the relationship between the two superpowers might be about to take a turn for the worse".

"You can play hardball with a small country but you can't do it with the USA", he said. However, there is no evidence of it being a deliberate provocation by the US rather than just an awkward coincidence.

The chief financial officer of Chinese tech giant, Huawei has been arrested in Canada after suspicions the company breached trade sanctions against Iran. But the company said early this year it had become the 25th largest research and development funder in Canada, thanks to partnerships with local universities.

While Meng's arrest comes at a delicate time in U.S.

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