Wednesday, 19 December, 2018

Iran connection emerges as Canada's envoy briefs China on Huawei arrest

Ms Meng Wanzhou Ms Meng Wanzhou
Andrew Cummings | 08 December, 2018, 14:56

Since learning of the investigation into her alleged activities, Meng has avoided the US and other Huawei executives have stopped traveling to the USA, he added.

Chief Financial Officer Meng Wanzhou was charged with conspiracy to defraud banks and should not be granted bail because she may flee, a lawyer representing Canada said during a court hearing on Friday. Xi faces competing pressures - to show strength, perhaps by retaliating against the United States, but also to limit the cost of rising tensions and the trade war with Washington on China's ruling class.

Huawei operated Skycom as an "unofficial subsidiary", he said, adding that Skycom employees had Huawei email addresses and badges and former employees have said there was no distinction between the two companies.

China, meanwhile, has officially demanded Meng's release.

The case, which has prompted fury in China, has put Canada in a hard position: comply with a request from its neighbour and largest trading partner, or risk angering the country it has, for months, sought stronger ties with.

"China talks are going very well", Trump said on Twitter, without providing any details.

China has condemned the detention of Ms Meng denying she had violated Chinese or United States laws while Huawei said it "has been provided very little information regarding the charges and is not aware of any wrongdoing by Ms Meng".

The world's largest telecom supplier and other Chinese technology companies have been on the defensive because of allegations about a backdoor in their equipment that facilitates industrial espionage. The Crown lawyer told the hearing that the USA alleges Huawei Technologies used subsidiary Skycom to do business with Iran, violating sanctions against that country.

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Martin said at the meeting Meng had with a bank that was referred to in a story by Reuters, she explained Huawei owned Skycom for a period of time but it sold the company in 2009. Meng is being accused of violating U.S. sanctions against Iran and deceiving banks to do so, and faces extradition to the US.

Gibb-Carsley said the Attorney General opposes Meng's release on bail.

The U.S. charges that China is using predatory tactics in its drive to overtake America's dominance in technology and global economic leadership. Chinese Commerce Ministry spokesman Gao Feng said China is confident it can reach a deal during the 90 days that Trump agreed to suspend a scheduled increase in USA import taxes on $200 billion worth of Chinese products. These allegedly include forcing American and other foreign companies to hand over trade secrets in exchange for access to the Chinese market and engaging in cyber theft. "These are issues of national security".

News of the detention in Canada of Meng Wanzhou, tech giant Huawei's chief financial officer, rocked markets across the globe.

The arrest also stroked fears of a potential backlash on American companies operating in China.

U.S. intelligence agencies have also alleged that Huawei is linked to China's government and its equipment could contain "backdoors" for use by government spies.

"You can trust her", he said. Congress issued a report concluding that "Huawei did not fully cooperate with the investigation and was unwilling to explain its relationship with the Chinese government or Chinese Communist Party, while credible evidence exists that it fails to comply with US laws".

In a statement earlier this week, 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.

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