Huawei CFO under arrest
VANCOUVER/WASHINGTON: Canada has arrested Chinese telecoms giant Huawei’s global chief financial officer in Vancouver, where she is facing extradition to the United States, Canada’s Department of Justice said yesterday.
The arrest is related to violations of US sanctions, a person familiar with the matter said.
Sources told Reuters in April US authorities had been investigating Huawei, one of the world’s largest makers of telecommunications network equipment, since at least 2016 for allegedly shipping USorigin products to Iran and other countries in violation of US export and sanctions laws.
Meng Wanzhou, a vicechairwoman on the company’s board and the daughter of company founder Ren Zhengfei, was arrested on Sunday and a court hearing was set for tomorrow, a Canadian Justice Department spokesman said.
Huawei confirmed the arrest in a statement and said it had been provided little information of the charges and was ‘‘not aware of any wrongdoing by Ms Meng.’’
China’s embassy in Canada said called for Meng’s release.
The sources said in April the US Justice Department probe was being run out of the US attorney’s office in Brooklyn.
The US Justice Department yesterday declined to comment, as did the US attorney’s office in Brooklyn.
The probe of Huawei is similar to one that threatened the survival of China’s ZTE Corp , which pleaded guilty in 2017 to violating US laws that restrict the sale of USmade technology to Iran.
Earlier this year, the US banned American firms from selling parts and software to ZTE, which then paid $1 billion as part of a deal to get the ban lifted.
In January 2013, Reuters reported Hong Kongbased Skycom Tech Co Ltd, which attempted to sell embargoed HewlettPackard computer equipment to Iran’s largest mobilephone operator, had much closer ties to Huawei than previously known.
Meng, who also has gone by the names Cathy and Sabrina, served on the board of Skycom between February 2008 and April 2009, according to records filed with Hong Kong’s Companies Registry.
The news about the arrest came the same day Britain’s BT Group said it was removing Huawei’s equipment from the core of its existing 3G and 4G mobile operations and would not use the Chinese company in central parts of the next network.
The handset and telecommunications equipment maker said it complies with all applicable export control and sanctions laws and US and other regulations.
The Huawei statement said Meng was detained when she was transferring flights in Canada.
Her arrest drew a quick reaction in Washington.
US Senator Ben Sasse praised the action and said that it was ‘‘for breaking US sanctions against Iran.’’
US stock futures and Asian shares tumbled as news of the arrest heightened the sense a major collision was brewing between the world’s two largest economic powers.