China summons Canada envoy over detained Huawei exec: state media

Posted December 09, 2018

Huawei chief financial officer Meng Wanzhou was arrested in Vancouver last Saturday and reportedly charged with fraud for telling UK-based banking company HSBC that the Chinese tech giant was in full compliance with USA sanctions against Iran while one of its subsidiaries was not in compliance of the restrictions.

Major companies have expressed concerns about how the arrest of Huawei Chief Financial Officer Meng Wanzhou in Canada at the request of USA authorities would affect U.S.

Huawei Chief Financial Officer Meng Wanzhou was arrested in Canada on Saturday at the same time that Trump and China President Xi Jinping met on the sidelines of the G20 Summit in Buenos Aires, to discuss a trade truce.

On Friday, a Canadian court heard the extradition plea, but no decision was reached after almost six hours of arguments and counter-arguments.

Meng had personally denied to bankers any direct connections between Huawei and the subsidiary, SkyCom, when in fact "SkyCom is Huawei", Gibb-Carsley said, putting the bank in jeopardy of violating sanctions.

In January 2013, Reuters reported that Skycom Tech Co Ltd, which attempted to sell embargoed Hewlett-Packard computer equipment to Iran's largest mobile-phone operator, had much closer ties to Huawei than previously known. Meng also served on Skycom's board between February 2008 and April 2009, according to Skycom records filed with Hong Kong's Companies Registry.

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According to court documents, the United States learned of Meng's plans to stop over in Vancouver on route to a third country on November 29.

"The allegations contained in this document do not support a prima facie case of fraud against Ms. Meng, let alone against Huawei", he said.

She was arrested while changing planes in Vancouver and is facing extradition to the United States.

The U.S. has led a charge to ban the use of Huawei products among its allies, particularly the Five Eyes intelligence-sharing network that also includes Canada, Australia, Britain and New Zealand.

Should a judge agree to extradite Meng, she would have multiple chances to appeal the decision.

Meng's lawyer said at the hearing that the fact that a person has extraordinary resources can not be a factor that would exclude them from bail.

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"We hope that Japan can provide a fair competitive environment for Chinese companies operating in Japan, and avoid doing anything that harms mutual trust and cooperation", Geng said.

The arrest was made at Washington's request as part of a USA investigation of an alleged scheme to use the global banking system to evade U.S. sanctions against Iran, according to people familiar with the probe. Huawei reportedly also received several warnings over violating Iranian sanctions.

Although there are some waivers, US Treasury Secretary Steven Mnuchin has said the US will "aggressively" target any firm or organisation "evading our sanctions".

Huawei operated Skycom as an "unofficial subsidiary", he said, adding that Skycom employees had Huawei email addresses and badges and former employees have said there was no distinction between the two companies. Huawei said the company had been given "very little information" about the charges and... Countries that have rejected the company's technology include Japan, which said in recent days it would ban government purchases of Huawei (as well as ZTE) technology.

Martin added that Meng was willing to surrender her two valid passports to the RCMP. But the extradition process could drag on for months.

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