A leading Chinese technology manager faces US fraud in connection with business relations with Iran, a Canadian prosecutor said Friday,…
A leading Chinese technology manager faces US fraud in connection with business relations with Iran, a Canadian prosecutor said Friday, which offers the first details of a case that has pummeled the financial markets and raised questions about a current trade weapon between Beijing and Washington.
Before a packed courtroom in Vancouver, a Canadian prosecutor revealed that Meng Wanzhou, chief economist Huawei Technologies, was requested by the United States to fool financial institutions about the relationship between Huawei and SkyCom, a company widely believed to be closely related to technology.
They claimed that Meng should be kept in pending pending any extradition to the United States because she is a flyger.
The issue seems to center on the sale of US-based technology to Iran by SkyCom, based in Hong Kong.
Meng, daughter of Huawei’s founder, Ren Zhengfei, arrested at an airport in Vancouver on Saturday
News about her arrest this week rowed markets already shaken by months of conflict between the world’s two largest economies. The fear is that the arrest of a top Chinese executive could affect a trade war weapon struck last week by President Trump and Chinese President Xi Jinping.
The U.S. and Canadian pages have so far said little about the Meng case. The Canadian Ministry of Justice said that Meng originally requested and granted a ban on disclosure, so few details about her case were released. On Friday, the ban was lifted.
In China, the government demanded its immediate release. “To maintain someone without giving a clear reason is an obvious violation of human rights,” said Geng Shuang, a spokesman for China’s Foreign Ministry.
The case has drawn attention to a long-standing US effort to limit the presence of the Chinese telecom giant in the United States and elsewhere.
Huawei, the world’s second largest smartphone manufacturer, is one of the pillars of the new high-tech economy that Xi has enchanted. But its survival could now be questioned.
An earlier case against ZTE Corp., another Chinese telecommunications giant accused of violating US export sanctions against Iran, broke the bankruptcy of last year. ZTE was originally blacklisted in the United States, but after Trumps intervention, it was downgraded to a fine of $ 890 million.
Although the United States has not formally announced charges against Huawei, the cases are similar.
“China has more incentives than the United States to stop escalation,” said Yanmei Xie, an analyst at Advisory Advisory in Gift Kale Dragonomics in Beijing. “The Chinese priority is to stop the United States from launching subsequent sanctions against Huawei. If the United States does what ZTE did, there’s very little China that can do to prevent Huawei from collapsing, and it’s not in China’s interest.”
Anna Fifield in Beijing contributed to this report.