Wednesday, 19 December, 2018

CFO for Huawei Technologies arrested in Vancouver, sought for extradition

Canada arrests Huawei’s chief financial officer may extradite her to the US The Huawei logo is seen in a shop in Shanghai | Johannes Eisele AFP
Priscilla Morrison | 06 December, 2018, 03:40

The chief financial officer of Chinese telecommunications giant Huawei has been arrested in Canada at the request of the U.S. over alleged Iran sanctions violations.

Ian McLeod, spokesperson for Canada's Justice Department, said on Wednesday the arrest took place in Vancouver on December 1.

The probe is reportedly being run out of the US attorney's office in Brooklyn, the sources said. "The ban was sought by Ms. Meng".

The Wall Street Journal reported in April that US Department of Justice had opened an investigation into suspected violations of Iran sanctions by Huawei. She is also the daughter of the company's founder, Ren Zhengfei.

The arrest was at the request of United States authorities. "The ban was being sought by Ms. Meng".

In April, China appealed to Washington to avoid damaging business confidence following the Wall Street Journal report that USA authorities were investigating whether Huawei violated sanctions on Iran amid spiraling technology tensions. She was detained while transferring between flights, the firm said.

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Meng's arrest comes as Ottawa and Beijing have been engaged in exploratory talks on a free trade agreement for the past two years, which would be the first deal of its kind between China and a western country. "The company believes the Canadian and USA legal system will ultimately reach a just conclusion".

USA authorities have suspected Huawei's alleged involvement in Iranian sanctions violations since at least 2016, when the US investigated ZTE Corp., Huawei's smaller Chinese rival, over similar violations.

In June, Canada's Globe and Mail newspaper reported that United States lawmakers warned the Canadian government that Huawei posed a major cybersecurity risk.

Reuters quoted Huawei, the world's largest maker of telecommunications network equipment and the number three smartphone supplier, as saying that it complies with all applicable laws and regulations where it operates.

This November, New Zealand's government banned its major telecommunications company Spark from using Huawei's equipment, which is described to "have a serious national security risk".

The decision was because of the technology, not because it was a Chinese company, said Andrew Little, Minister Responsible for the GCSB.

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