Huawei CFO is arrested in Canada over Iran links

Trouble

As reported by Bloomberg, tensions are back on the rise between the USA and China following the Canadian arrest of Huawei's global CFO, who is set to be extradited to the U.S. to face charges of violating Iran sanctions.

Meng Wanzhou, also known as Sabrina Meng, is not only Huawei's chief financial officer and deputy chairwoman, she is also the daughter of Ren Zhengfei, founder of the Chinese telecoms giant.

Details of the arrest have not been released, but the United States has applied to extradite CFO Meng Wanzhou from Vancouver, with a bail hearing set for tomorrow. McLeod said a publication ban had been imposed in the case and he could not provide further details. "The ban was sought by Ms. Meng", continued the statement.

In its statement Wednesday, 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. The Wall Street Journal reported in April that the US Justice Department was investigating whether Huawei violated US sanctions on Iran. The company is the world's second-largest telecommunications equipment and service provider, after South Korea's Samsung, and recently surpassed Apple.

The Globe and Mail reported earlier Wednesday that she was arrested on suspicion of violating USA trade sanctions on Iran.

The comments come after China's embassy in Ottawa issued a statement Wednesday calling Meng's arrest a serious violation of human rights.

"The company believes the Canadian and US legal systems will ultimately reach a just conclusion".

The Pentagon has alleged the Chinese government could use the phones to spy.

The U.S. leader has spent the past few days seeking to convince the world - and skeptical equity investors - that China has agreed to major concessions, including reducing or removing tariffs on U.S. cars.

Hong Kong-listed ZTE, which was subject to a United States banning order earlier his year over security fears before that was reduced to a massive fine, was nearly five percent down.

That means the USA has less leverage over Huawei than over ZTE and some other Chinese companies. "This headline is quite significant as the USA government is attempting to persuade allies to stop using Huawei equipment due to security fears, and this headline could weigh negatively on tech stocks", said Stephen Innes, head of trading at Oanda in Singapore.

Founded in China more than 30 years ago, Huawei's revenue in 2018 exceeded $100billion for the first time in its history, according to CNBC. ZTE Corp., another Chinese technology company, almost collapsed due to US penalties for violating Iran sanctions before Trump rescued it following a request from Xi.

American lawmakers have claimed, without evidence, that Huawei passed sensitive information collected by its equipment to the Chinese government.

In a response, ZTE denied the charges while Huawei insisted it "posed no greater cybersecurity risk than any ICT [Information and Communications Technology] vendor".

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