Huawei CFO Meng Wanzhou arrested in Canada on US orders over 'violating sanctions in Iran'

Arrest: Huawei’s Meng Wanzhou faces extradition to America over reported claims the Chinese firm violated US sanctions on Iran
Huawei Technologies
David Gardner6 December 2018

The daughter of the founder of Huawei, the Chinese telecoms giant at the centre of a spying row, has been arrested in Canada at the request of the US authorities, it was revealed today.

Meng Wanzhou, Huawei’s chief financial officer and deputy chairwoman, was detained in Vancouver, according to Canada’s Justice Department.

Although details of the case are sealed, Ms Meng faces extradition to the US, where prosecutors are reportedly investigating claims that Huawei violated US sanctions on Iran.

The Chinese company, which sells smartphones and telecoms equipment around the world, has come under increasing scrutiny in the US and other countries — including Britain — over concerns the Beijing government could be using Huawei’s networking technology to spy on citizens.

In a rare speech on Monday, MI6 chief Alex Younger raised questions over Chinese tech companies being part of the UK’s telecoms infrastructure.

"We need to decide the extent to which we are going to be comfortable with Chinese ownership of these technologies and these platforms in an environment where some of our allies have taken a very definite position,” he said.

BT also said yesterday it was removing Huawei equipment from the core of its 3G and 4G mobile services, and would not use the company’s technology when it rolls out its new 5G network.

Beijing insisted Ms Meng, the daughter of Huawei founder Ren Zhengfei, should be set free. “The company has been provided very little information regarding the charges and is not aware of any wrongdoing by Ms Meng,” a Huawei spokesperson said.

The arrest on Saturday came just two days after US President Donald Trump met with his Chinese counterpart Xi Jinping at the G-20 summit in Buenos Aires and agreed a 90-day truce in the escalating trade war between the two superpowers.

With the money markets jittery about Mr Trump’s conflicting messages over the meeting, Ms Meng’s arrest was seen today as another source of contention between Washington and Beijing.

Ms Meng was detained as she changed flights in Canada. A bail hearing has been set for tomorrow in Vancouver. Canada’s Justice department has said it was unable to say any more, as the courts had agreed to Ms Meng’s request for a blackout on the publication of any details in the case.

A report in the New York Times said the company was being investigated in the US for breaking sanctions against both Iran and North Korea.

The Chinese telecoms giant claimed last month its products are trusted by customers in 170 countries, and by 46 of the world’s 50 largest telecoms companies.

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