BUSI­NESS OF HUAWEI

The Mercury - - BUSINESS REPORT WORLD -

FOUNDER’S DAUGH­TER AR­RESTED

THE DAUGH­TER of Chi­nese tech gi­ant Huawei’s founder was on Satur­day ar­rested in Canada and is fac­ing ex­tra­di­tion to the US, deal­ing a blow to hopes of an eas­ing of Sino-US trade ten­sion and rock­ing global stock mar­kets. The shock ar­rest of Meng Wanzhou, who is also Huawei Tech­nolo­gies Com­pany Ltd’s chief fi­nan­cial of­fi­cer, raises fresh doubts over a 90-day truce on trade struck be­tween pres­i­dents Don­ald Trump and Xi Jin­ping on Satur­day – the day she was de­tained. The ar­rest is re­port­edly re­lated to vi­o­la­tions of US sanc­tions, a per­son fa­mil­iar with the mat­ter said. The ar­rest and any po­ten­tial sanc­tions on the world’s sec­ond big­gest smart­phone maker could have ma­jor reper­cus­sions on the global tech­nol­ogy sup­ply chain. Shares in Asian sup­pli­ers to Huawei, which also counts Qual­comm Inc and In­tel among its ma­jor sup­pli­ers, tum­bled yes­ter­day. Meng, one of the vicechair­per­sons on the com­pany’s board and the daugh­ter of com­pany founder Ren Zhengfei, was ar­rested on De­cem­ber 1 at the re­quest of US au­thor­i­ties and a court hear­ing had been set for to­day, a Cana­dian Jus­tice Depart­ment spokesper­son said. Trump and Xi had dined in Ar­gentina on De­cem­ber 1 at the G20 sum­mit. Sources said in April that US au­thor­i­ties had been prob­ing Huawei, the world’s largest tele­coms equip­ment maker, since at least 2016 for al­legedly ship­ping US-ori­gin prod­ucts to Iran and other coun­tries in vi­o­la­tion of US ex­port and sanc­tions laws. Huawei con­firmed the ar­rest and said it had been pro­vided lit­tle in­for­ma­tion of the charges, adding that it was “not aware of any wrong­do­ing by Ms Meng”. China’s em­bassy in Canada res­o­lutely op­posed the ar­rest and called for Meng’s im­me­di­ate re­lease. I Reuters

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