Northwest Arkansas Democrat-Gazette
Bail set at $7.5 million for exec
New arrest seen as retribution for case against Huawei official
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 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 $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.
“We’re deeply concerned,” Goodale said. “A Canadian is obviously in difficulty in China. … We are sparing no effort to do everything we possibly can to look after his safety.”
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’ 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.”
Earlier in the day, China vowed to “spare no effort” to protect against “any bullying that infringes the legitimate rights and interests of Chinese citizens.”
Chinese Foreign Minister Wang Yi didn’t mention Meng by name. But ministry
spokesman Lu Kang said Wang was referring to cases of all Chinese abroad, including Meng’s.
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.
U.S. State Department spokesman Robert Palladino told reporters Tuesday 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.
The U.S. and China have tried to keep Meng’s case separate from their wider trade dispute and suggested Tuesday that talks to resolve their differences may resume.
The Chinese government said that its economy czar had discussed plans with U.S. Treasury Secretary Steven Mnuchin and Trade Rep. Robert Lighthizer for talks aimed at settling the two countries’ differences. Lighthizer’s office confirmed that he had spoken by phone with Chinese Vice Premier Liu He.
The news that trade negotiations may resume helped lift stock markets around the world. The United States has imposed tariffs on $250 billion in Chinese imports in response to complaints Beijing steals American technology and forces U.S. companies to turn over trade secrets.
Tariffs on $200 billion of those imports were scheduled to rise from 10 percent to 25 percent on Jan. 1. But Trump agreed to postpone those by 90 days while the two sides negotiate.
Meanwhile, the Trump administration is planning a series of actions this week targeting China’s trade, cyber and economic policies, bringing together the work of a handful of federal agencies as part of a longer-term strategy to keep pressure on Beijing, according to senior administration officials.
The moves, which have been contemplated for months and are expected to be announced as early as today, stem from a growing concern within the administration that China will not easily change its practices — including what it says is a pattern of hacking into U.S. companies and throwing up trade barriers to U.S. goods.
The action was coordinated by Robert Lighthizer, the U.S. trade representative, and several other administration officials, who have grown frustrated with Beijing’s vague promises to make sweeping changes to its treatment of U.S. intellectual property and technology transfer, and as-yet unfulfilled commitments to substantially increase purchases of U.S. goods.
The Justice Department is preparing to announce the indictments of several hackers that the United States believes worked for the Chinese government and have targeted
U.S. companies for years, according to a government official briefed on the plan.
The U.S. is also pressing ahead with plans to tighten restrictions on technology exports that some American companies fear could hurt research and development.
The Commerce Department last month asked for public comment on a list of new technologies that have national-security applications and whether they should be subject to stringent export-control rules. Commerce has extended its comment period by three weeks, to Jan. 10, in response to companies and business groups that have asked for more time to weigh in on the complex process.
Technology companies are worried the proposal could crimp sales overseas and undermine their ability to innovate.
“It’s so wildly over-broad. Our companies are struggling to wrap their heads around what it wouldn’t cover rather than what it would cover,” Sage Chandler, vice president for international trade at the Consumer Technology Association, said in an interview. The association’s members include Facebook Inc., Alphabet Inc.’s Google, and Amazon.com Inc.
Information for this article was contributed by Jim Morris, Rob Gillies, Paul Wiseman, Matthew Lee and Joe McDonald of The Associated Press; by Glenn Thrush and Alan Rappeport of The New York Times; and by Jenny Leonard and David McLaughlin of Bloomberg News.