Huawei founders daughter arrested
VANCOUVER The daughter of Chinese tech giant Huaweis founder has been arrested in Canada and is facing extradition to the US, dealing a blow to hopes of an easing of Sino-US trade tensions and rocking global stock markets.
The shock arrest of Meng Wanzhou, who is also Huawei Technologies Co Ltds 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 related to violations of US sanctions, a person familiar with the matter said. Reuters was unable to determine the precise nature of the violations.
The arrest and any potential sanctions on the worlds second biggest smartphone maker could have major repercussions on the global technology supply chain.
Meng, one of the vice chairs on the companys board and the daughter of company founder Ren Zhengfei, was arrested on December 1 at the request of US authorities and a court hearing has been set for today, a Canadian Justice Department spokesman said. Trump and Xi had dined in Argentina on December 1 at the G20 summit.
Sources said in April that US authorities have been probing Huawei, the worlds 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 in a statement and said that it has been provided little infor- mation of the charges, adding that it was not aware of any wrongdoing by Ms Meng.
She was detained when she was transferring flights in Canada, it added.
Chinas embassy in Canada said it resolutely opposed the arrest and called for Mengs immediate release.
In April, the sources said the US Justice Department probe was being handled by the US attorneys office in Brooklyn.
The US Justice Department on Wednesday declined to comment. A spokesman for the US attorneys office in Brooklyn also declined to comment.
While Mengs arrest comes at a delicate time in US-China relations, it was not clear if the timing was coincidental.
Arthur Kroeber, founder of Gavekal Dragonomics, said it was unlikely that Beijing would retaliate in kind against the lo- cal US business community, whose interests have partly overlapped with Chinas in the trade war and been a source of leverage for Beijing.
You can play hardball with a small country but you cant do it with the US, he said. Actually it hurts them to make life difficult for US companies.
The probe of Huawei is similar to one that threatened the survival of Chinas ZTE Corp, which pleaded guilty in 2017 to violating US laws that restrict the sale of Americanmade technology to Iran.
Earlier this year, the US banned American firms from selling parts and software to ZTE, which then paid US$1 billion this summer as part of a deal to get the ban lifted.
It was not i mmediately clear how Huaweis business operations might be affected by the arrest. REUTERS