China calls for re­lease of Huawei CFO af­ter ar­rest in Canada

China Daily (USA) - - FRONT PAGE - By MA SI and CHENG YU

China called for the im­me­di­ate re­lease of Meng Wanzhou, chief fi­nan­cial of­fi­cer of Huawei Tech­nolo­gies Co, on Thurs­day af­ter Cana­dian au­thor­i­ties ar­rested her at the re­quest of the United States.

For­eign Min­istry spokesman Geng Shuang said China has made solemn rep­re­sen­ta­tions to Canada and the United States, de­mand­ing they clar­ify the rea­son for the ar­rest and im­me­di­ately re­lease Meng in or­der to ef­fec­tively pro­tect her rights and in­ter­ests.

The re­marks came af­ter Cana­dian po­lice, at the re­quest of the US, re­port­edly ar­rested Meng in Van­cou­ver on Satur­day. Meng, who is also deputy chair­woman of Huawei and the daugh­ter of its founder, faces ex­tra­di­tion to the US.

Huawei, the world’s se­cond-largest smart­phone ven­dor and a lead­ing maker of tele­com equip­ment, said in a state­ment that it has been given very lit­tle in­for­ma­tion re­gard­ing the charges and is not aware of any wrong­do­ing by Meng.

“The com­pany be­lieves the Cana­dian and US le­gal sys­tems will ul­ti­mately reach a just con­clu­sion,” Huawei said in the state­ment, adding that it com­plies with all ap­pli­ca­ble laws and reg­u­la­tions where it op­er­ates, in­clud­ing ex­port con­trols, sanc­tions and reg­u­la­tions of the United Na­tions, the US and the Euro­pean Union.

The ar­rest sent shares of Huawei’s sup­pli­ers sharply lower on Thurs­day, and trig­gered con­cerns about slow­ing the global de­vel­op­ment of fifth-gen­er­a­tion tech­nol­ogy, given Huawei’s lead­ing po­si­tion in the mo­bile com­mu­ni­ca­tion net­work.

The com­pany’s prod­ucts and servi- ces are avail­able in more than 170 coun­tries and re­gions, with oper­a­tions span­ning Africa, Europe and Asia.

James Yan, re­search di­rec­tor at Coun­ter­point Tech­nol­ogy Mar­ket Re­search, said any dam­age to Huawei will have a broader neg­a­tive im­pact on the global elec­tron­ics in­dus­try, given its sprawl­ing pres­ence in the sec­tor.

Huawei has more than 2,000 com­po­nent and ser­vice sup­pli­ers, a sig­nif­i­cant part of which are US com­pa­nies, in­clud­ing Qual­comm and In­tel, two an­a­lysts at Gu­osen Se­cu­rity, Cheng Cheng and Li Ya­jun, said in a re­search note.

On Thurs­day, Huawei sup­pli­ers AAC Tech­nolo­gies, Yangtze Op­ti­cal Fi­bre and Ca­ble, and BYD Elec­tronic In­ter­na­tional Co were all down 5 to 8 per­cent in Hong Kong.

Ni­cole Peng, se­nior di­rec­tor of mar­ket re­search com­pany Canalys, said, “The ar­rest will in­crease uncer­tainty and stoke con­cerns among for­eign tele­com car­ri­ers.”

Meng Wanzhou

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