China demands release of executive
Tech giant Huawei seen by U.S. as front for Chinese spying
BEIJING — China on Thursday demanded that Canada release an executive of Chinese tech giant Huawei who was arrested in a case that compounds tensions with the U.S. and threatens to complicate trade talks.
Meng Wanzhou, chief financial officer of Huawei Technologies Ltd., faces possible extradition to the United States, according to Canadian authorities. The Globe and Mail newspaper, citing law enforcement sources, said she is suspected of trying to evade U.S. trade curbs on Iran.
Huawei, the biggest global supplier of network gear used by phone and internet companies, has been the target of deepening U.S. security concerns. Under President Donald Trump and his predecessor, Barack Obama, Washington has pressured European countries and other allies to limit use of its technology.
The U.S. sees Huawei and smaller Chinese tech suppliers as possible fronts for spying and as commercial competitors. The Trump administration says they benefit from improper subsidies and market barriers.
The timing of Ms. Meng’s arrest — significant because of her elite connections and prominent
corporate position — is awkward following the announcement of a U.S.-Chinese cease-fire in a trade war that has its roots in Beijing’s technology policy. But in a sign that China wanted to push for a deal despite anger over her arrest, officials said Thursday that trade talks would go ahead.
Ms. Meng was detained in Vancouver on Saturday, the day Mr. Trump and Chinese President Xi Jinping met in Argentina and announced a deal. A bail hearing was set for Friday.
The British bank HSBC is cooperating with U.S. authorities in its investigation, people familiar with the matter said Thursday.
U.S. national security adviser John Bolton told NPR that he knew of the pending arrest in advance. He declined to talk about the specifics of the case and said he didn’t know if Mr. Trump knew about it before it happened, but added that there has been enormous concern about the practice of Chinese firms like Huawei allegedly using stolen U.S. intellectual property. He said that would be a major subject of negotiations with China.
Canadian Prime Minister Justin Trudeau said he was given a few days advance notice of the intention of Canadian authorities to arrest her, but said it was the decision of law enforcement and there was no political interference.
“I can assure everyone that we are a country of an independent judiciary and the appropriate authorities took the decisions in this case without any political involvement or interference,” Mr. Trudeau said.
Stock markets tumbled on the news, fearing renewed U.S.-Chinese tensions that threaten global economic growth. Hong Kong’s Hang Seng lost 2.5 percent and the DAX in Germany sank 1.8 percent. In the U.S., stocks knocked more than 780 points off the Dow Jones Industrial Average before the Dow rallied to finish just 79 points down.
Ms. Meng’s arrest triggered shock in China. The state-owned Global Times reflected Chinese outrage over her arrest in an editorial accusing Washington of “resorting to a despicable rogue approach” in a bid to hurt the company. The paper also tweeted Thursday that China should be ready for an escalation of the trade war, warning that Ms. Meng’s arrest was vivid evidence that Washington would not soften its stance against Beijing.
A Chinese government statement said Ms. Meng broke no U.S. or Canadian laws and demanded Canada “immediately correct the mistake” and release her.
Beijing asked Washington and Ottawa to explain the reason for Ms. Meng’s arrest, said a Foreign Ministry spokesman, Geng Shuang. He said arresting her without that violated her human rights.
But the Ministry of Commerce signaled that Beijing wants to avoid disrupting progress toward settling a dispute with Washington over technology policy that has led them to raise tariffs on billions of dollars of each other’s goods.
China is confident they can reach a trade deal during the 90 days that Mr. Trump agreed to suspend U.S. tariff hikes, said a ministry spokesman, Gao Feng.
Mr. Gao also confirmed for the first time Thursday that China would implement the “preliminary consensus” reached between Mr. Trump and Mr. Xi on agricultural products, autos and energy, without offering further details.
Mr. Trump’s tariff hikes on Chinese imports stemmed from complaints Beijing steals or pressures foreign companies to hand over technology. But U.S. officials also worry more broadly that Chinese plans for state-led creation of Chinese champions in robotics, artificial intelligence and other fields might erode U.S. industrial leadership.
“The United States is stepping up containment of China in all respects,” said Zhu Feng, an international relations expert at Nanjing University. He said targeting Huawei, one of its most successful companies, “will trigger anti-U.S. sentiment.”
“The incident could turn out to be a breaking point,” Mr. Zhu said.
The Wall Street Journal reported this year U.S. authorities are investigating whether Huawei violated sanctions on Iran. The Chinese government appealed to Washington to avoid any steps that might damage business confidence.