Huawei CFO arrested in Canada for violating Iran sanctions

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The Israeli actress Gal Gadot also became the company's US brand ambassador for its Mate 10 Pro smartphone, an announcement that came after AT&T pulled out of a deal to sell Huawei's phones.

Under Trump and his predecessor, Barack Obama, Washington has pressured European countries and other allies to limit use of Huawei's technology. Some have predicted that the USA will use this situation as a bargaining chip in the trade dispute.

Are these issues related to the U.S. Both countries have been locked into a trade war for much of the year, and only agreed last weekend to restart discussions.

The Vancouver houses, one on Matthews Ave.in Shaughnessy, the other on West 28th Avenue in Dunbar, are registered to Xiaozong Liu - according to B.C. Land Title registry records - the same name as Meng's husband, who is identified in Chinese media.

What do we know about the arrest?

Wang Heng, a Chinese business law professor at the University of New South Wales in Australia, told the Hong Kong-based newspaper that the USA could use Meng to put pressure on Beijing if it doesn't meet Trump's deadline to hammer out a resolution in the trade dispute.

White House National Security Adviser John Bolton, who sat at the table with Mr Trump and Mr Xi, knew in advance of the U.S. request that Canadian authorities arrest Huawei CFO Meng Wanzhou, he told National Public Radio on Thursday (Dec 6).

He also said Meng's legal rights must be ensured, adding that neither Canadian nor American officials had so far responded to China's concerns.

Canadian authorities said Wednesday that they have arrested Meng for possible extradition to the United States.

Stock markets tumbled on the news, fearing renewed U.S. "The potential slowdown in global growth is also something the markets are pricing in". The Dow Jones dropped about 3 percent, or 750 points by late morning trading.

The Chinese government said Meng had broken no United States or Canadian laws and demanded Canada "immediately correct the mistake" and release her.

Foreign Ministry spokesman Geng Shuang made the statement at a regular news briefing, adding that the Chinese consulate in Canada had been providing assistance to Meng.

She also said she was married with a son and a daughter and that her husband did not work in the industry. According to the Canadian Justice Department, she was arrested in Vancouver on December 1st, the very same day that Donald Trump and Xi Jinping set down to dinner in Argentina.

Trump has threatened to raise tariffs on Chinese goods in response to complaints that Beijing improperly pressures foreign companies to hand over technology.

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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.

Huawei, one of the world's biggest suppliers of network gear used by phone and internet companies, has been the subject of deepening security concerns within the USA government and the governments of countries like Australia and New Zealand.

"The incident could turn out to be a breaking point", Zhu said.

Sen. Mark Warner of Virginia called Chinese telecommunications giant Huawei a "threat to our national security" and urged Canada to exclude Huawei equipment from its 5G mobile phone network.

Sources told Reuters in April that us authorities have been investigating Huawei, the world's largest telecoms equipment maker, since at least 2016 for allegedly shipping USA -origin products to Iran and other countries in violation of us export and sanctions laws.

Huawei, for its part, has denied sharing information with the Chinese government, as has ZTE.

Mr Bolton, in addressing the arrest in the NPR interview, stressed that the conduct of Chinese companies - and especially technology companies - is a central issue in the trade dispute with the US. Trump restored access after ZTE agreed to pay a $1 billion fine, replace its executive team and embed a USA -chosen compliance team in the company.

But Huawei spent heavily on research and development and is now regarded as a global leader in key telecom network technologies and high-end smartphones. Personnel on United States military bases are banned from buying ZTE and Huawei equipment.

"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 NY, when she was transferring flights in Canada", the statement reads.

Trudeau said Ottawa had been given a few days' advance notice about the plan to arrest Meng Wanzhou, who faces extradition to the United States.

Such requests must be made through the U.S. Department of Justice's Office of International Affairs (OIA).

Meng Wanzhou's detention comes after American authorities reportedly launched an investigation into suspected Iran sanctions by Huawei, which was already under scrutiny by U.S. intelligence officials, who deemed the company a national security threat.

China, Russia and Saudi Arabia are among the countries with no USA extradition treaties.

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