Huawei CFO arrest outrages China and rattles markets

Huawei CFO arrest outrages China and rattles markets

Meng's detention also raised concerns about potential retaliation from Beijing in Canada, where Prime Minister Justin Trudeau sought to distance himself from the arrest.

"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. "We were advised by them with a few days' notice that this was in the works", Mr Trudeau told reporters in Montreal in televised remarks.

"The Chinese side firmly opposes and strongly protests over such kind of actions which seriously harmed the human rights of the victim", the diplomatic mission said in a statement.

But China's government says that she hasn't broken any USA or Canadian laws, and is demanding that Canada "immediately correct the mistake" and release her.

Meng was arrested on the same day President Donald Trump and Chinese President Xi Jinping met at the G-20 summit in Argentina and announced a 90-day truce in their trade war.

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

It added that it complies with all laws and regulations where it operates, including worldwide sanctions.

A Huawei spokesperson said Meng faces unspecified charges in the Eastern District of NY.

Senator Ben Sasse earlier linked Meng's arrest to USA sanctions on Iran, which Trump is trying to squeeze economically after withdrawing from a denuclearization deal.

"You can play hardball with a small country but you can't do it with the US", he said.

Top British and New Zealand telecom providers have banned Huawei from their 5G networks, as did the Australian government. But Trump issued a reprieve, possibly in part because US tech companies are major suppliers of the Chinese giant and would also have been scorched. The arrest has been made by Canadian law enforcement at the request of the United States over violating the Iran sanctions.

David Mulroney, a former Canadian ambassador to China, says that while he doesn't want to overstate the possibility of a Canadian being jailed, China will be looking for ways to strike back.

Trump to kill old NAFTA to push Congress to approve USMCA
Legislators in Canada and Mexico must still approve the pact. "I don't see how they get this ratified by Congress", Toomey said. Most notably, the USMCA gives tariff-free access to imported USA wheat for long-time flour-milling customers in Mexico.

Beijing has called on both Ottawa and Washington to immediately clarify the reasons for detaining Meng as well as her immediate release.

The U.S. launched a criminal probe into Huawei's dealings in Iran in April.

The New York Times said the company had been subpoenaed by the US Department of Commerce and the US Department of the Treasury over alleged contraventions of Iran and North Korea sanctions.

Best Buy has even halted sales of Huawei devices completely in the U.S.

A Huawei spokesman declined to comment on Thursday and said that Wednesday's statement still stands. "China tension around geopolitics and techno-nationalism", he said of Meng's arrest.

For more on this and other news around the world we turn to our Ro Aram...

But suspicions persist. Concern now centres on the deployment of fifth-generation (5G) mobile networks, where Huawei is at the cutting edge.

Earlier this year, six top U.S. intelligence chiefs voiced their concerns about Huawei phones to the Senate Intelligence Committee, with FBI Director Christopher Wray saying he was "deeply concerned about the risks of allowing any company or entity that is beholden to foreign governments that don't share our values to gain positions of power inside our telecommunications networks". "We certainly don't inform the president on every one of them", he said of the arrest.

"This is really not good for the Chinese-Canadian Trade relationship", Sui Sui, a Canada-China trade expert and professor at Ryerson University's Ted Rogers School of Management, told Yahoo Finance Canada.

Earlier this year, the United States banned American firms from selling parts and software to ZTE, which then paid $1 billion this summer as part of a deal to get the ban lifted.

Following news of the event, which didn't break until Wednesday, speculation swirled as to whether the United States or Chinese presidents knew of the law enforcement action.

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