Huawei heiress arrested at US behest in Canada Likely to escalate tension between US & China
for allegedly shipping U.S.-origin products to Iran and other countries in violation of U.S. export and sanctions laws.
The arrest and any potential sanctions on the world’s second biggest smartphone maker could have major repercussions on the global technology supply chain.
U.S. 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, not just over tariffs but also over technological hegemony.
Huawei is not listed, but China’s second-largest telecom equipment maker, ZTE Corp, sank nearly 6 percent in Hong Kong while most of the nearby national bourses lost at least 2 percent. MSCI’s benchmark for global stocks .MIWD00000PUS declined 0.61 percent, and U.S. markets were on track to open lower by 1 percent or more.
Huawei is already under intense scrutiny from U.S. and other western governments about its ties to the Chinese government, driven by concerns it could be used by the state for spying. It has been locked out of the United States and some other markets for telecom gear. Huawei has repeatedly insisted Beijing has no influence over it.
Meng, one of the vice chairs on the company’s board and the daughter of company founder Ren Zhengfei, was arrested on Dec. 1 at the request of U.S. authorities and a court hearing has been set for Friday, a Canadian Justice Department spokesman said. Trump and Xi had dined in Argentina on Dec. 1 at the G20 summit.
Huawei said, “The company has been provided very little information regarding the charges and is not aware of any wrongdoing by Ms. Meng,” it said.
A file photo of Huawei owner’s daughter Meng Wanzhou with Russian Prez Vladimir Putin.