Huawei CFO gets bail; China detains Canadian
VANCOUVER, British Columbia — A Canadian court granted bail on Tuesday to a top Chinese executive arrested at the United States’ request in a case that has set off a diplomatic furor among the three countries and complicated high-stakes U.S.-China trade talks.
Hours before the bail hearing in Vancouver, China detained a former Canadian diplomat in Beijing in apparent retaliation for the Dec. 1 arrest of Meng Wanzhou, chief financial officer of Chinese telecommunications giant Huawei and daughter of the company’s founder.
After three days of hearings, a British Columbia justice granted bail of $10 million Canadian (U.S. $7.5 million) to Meng but required her to wear an ankle bracelet, surrender her passports, stay in Vancouver and its suburbs and confine herself to one of her two Vancouver homes from 11 p.m. to 6 a.m.
The decision was met with applause in the packed courtroom, where members of Vancouver’s Chinese community had turned out to show support for Meng.
Amid rising tension between China and Canada, Canadian Public Safety Minister Ralph Goodale confirmed Tuesday that a former Canadian diplomat had been detained in Beijing. The detention came after China warned Canada of consequences for Meng’s arrest.
Michael Kovrig, who previously worked as a diplomat in Beijing, Hong Kong and the United Nations, was taken into custody Monday night during one of his regular visits to Beijing, according to a spokesman for International Crisis Group, where Kovrig now works as North East Asia adviser based in Hong Kong.
Canada had been bracing for retaliation for Meng’s arrest. The Canadian province of British Columbia canceled a trade mission to China amid fears China could detain Canadians to put pressure on Ottawa over Meng’s detention.
“In China there is no coincidence,” Guy Saint-Jacques, a former Canadian ambassador to China, said of Kovrig’s detention. “Unfortunately Canada is caught in the middle of this dispute between the U.S and China. Because China cannot kick the U.S. they turn to the next target.”
Washington accuses Huawei of using a Hong Kong shell company to sell equipment to Iran in violation of U.S. sanctions. It says Meng and Huawei misled banks about the company’s business dealings in Iran.
On Tuesday, U.S. State Department spokesman Robert Palladino told reporters in Washington “the charges against Meng pertain to alleged lies to United States financial institutions” about Huawei’s business dealings in Iran.
“It is clear from the filings that were unsealed in Canada, Meng and others are alleged to have put financial institutions at risk of criminal and civil liability in the United States by deceiving those institutions as to the nature and extent of Huawei’s business in Iran,” Palladino said.
Meng has denied the U.S. allegations through her lawyer in court, promising to fight them if she is extradited to face charges in the United States.
Huawei, the biggest global supplier of network gear for phone and internet companies, is the target of U.S. security concerns. Washington has pressured other countries to limit use of its technology, warning they could be opening themselves up to surveillance and theft of information.