Huawei exec faces USA fraud charges linked to Iran, court hears

Lamar Ellis
December 8, 2018

Huawei staff briefed on an internal memo told Reuters on Friday the company had appointed Chairman Liang Hua as acting CFO following Meng's arrest.

Trump did not know about the arrest in advance, two USA officials said on Thursday.

A senior Chinese telecoms executive committed fraud when she lied about links between Huawei and a shell company used to sell telecommunications equipment to Iran in breach of U.S. sanctions, Canadian prosecutors have told a Vancouver court.

The surprise arrest, already denounced by Beijing, raises doubts about whether the trade truce will hold and whether the world's two biggest economies can resolve the complicated issues that divide them.

"This could mean either taking a stronger stance on trade negotiations, or taking a stronger stance on USA tech firms in China right now". Meng is accused to have previously insisted the two were separate companies.

China has demanded the chief financial officer's release and labeled her detention a "gross violation of human rights".

He said his client would not flee because going against a court order would humiliate and embarrass her father, Huawei founder Ren Zhengfei.

"China and the United States continue to have frosty relations and this has seen investors prefer to stay away than get involved in what has proven to be a volatile market for quite some time now", said Mihir Kapadia - CEO and Founder of Sun Global Investments.

However, commenting on the negotiations between Donald Trump and Xi Jinping, the left-leaning American MSM referred to the seeming ambiguity of the US-Chinese agreement, saying that the Chinese were "puzzled and irritated" by Trump's bravado in Twitter following the talks.

At a closed-door security meeting of USA companies in Singapore on December 6, one topic was high on the agenda: the arrest of a top executive at Chinese tech giant Huawei and the potential backlash on American firms operating in China.

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Japan is planning to halt government purchases of equipment from China's two largest telecommunications firms, Huawei and ZTE, amid security concerns, Yomiuri Shimbun reported Friday.

Reporters in attendance tweeted details from the hearing, and noted the shocked reaction from the gathered crowd upon learning the possible severity of Meng's punishment were she to face trial and be found guilty. Justice William Ehrcke said he would think about proposed bail conditions over the weekend.

"The Chinese obviously are not happy that this woman was grabbed at the airport in Vancouver, but they also recognize that there [were] judicial proceedings in the US, that there was an global mandate to grab her that had been issued", Ken Courtis chairman, Starfort Holdings told BNN Bloomberg in an interview on Friday.

It comes as heightened economic tensions between the United States and China seemed to be cooling - at least a little. "These are issues of national security". "That was the case with other companies, and will continue to be the case".

The United States has imposed tariffs on $250 billion in Chinese goods to pressure Beijing to change its ways.

The arrest of a top-ranking officer of one of China's leading tech companies on charges of technology theft and misuse has given a new twist to the trade and technology war between Washington and Beijing, even as the company ran into trouble in other countries - mainly Japan, which banned its government staff from buying Huawei devices, and the United Kingdom, which made the firm submit to special security norms to continue to operate.

The arrest also stroked fears of a potential backlash on American companies operating in China.

"The Chinese are well aware of John's seniority", she said. Congress issued a report concluding that "Huawei did not fully cooperate with the investigation and was unwilling to explain its relationship with the Chinese government or Chinese Communist Party, while credible evidence exists that it fails to comply with USA laws".

The Trump administration has tightened regulations on high-tech exports to China and made it harder for Chinese firms to invest in US companies or to buy American technology in cutting-edge areas like robotics, artificial intelligence and virtual reality. -China trade relations caused stocks to sell off on Friday, with technology shares leading the decline.

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