Huawei's troubles may be worsening as Japan and British Telecom weigh bans

09 December, 2018, 01:01 | Author: Gregory Stephens
  • Handout of Meng Wanzhou Huawei Technologies Co Ltd's chief financial officer

If extradited to the US, Meng would face charges of conspiracy to defraud numerous financial institutions, a Canadian court heard on Friday.

Meng was arrested in Vancouver on December 1 while transferring planes on a trip from Hong Kong to Mexico, at the request of us authorities seeking her extradition.

David Ryder / Reuters A member of B.C. Sheriff Service (BCSS) and a security guard keep watch outside the B.C. Supreme Court bail hearing of Huawei CFO Meng Wanzhou, who is held on an extradition warrant in Vancouver.

Meng is specifically accused of lying to a USA bank, identified by her lawyer as "Hong Kong Bank", about the use of a covert subsidiary to sell to Iran in breach of sanctions.

Gibb-Carsley told the B.C. Supreme Court hearing that Reuters reported in 2013 that Huawei was operating Skycom and had attempted to import USA -manufactured computer equipment into Iran in violation of sanctions.

In her dealings with the banks, Meng hid ties between Huawei and Skycom, when in fact Skycom employees worked for the Chinese telecom-equipment giant, Gibb-Carsley added. The prosecutor suggested that Meng has shown a pattern of avoiding the USA since becoming aware of the investigation, has no ties to Canada and has access to vast wealth and connections, thus posing a flight risk.

The United States has 60 days to make a formal extradition request, which a Canadian judge will weigh to determine whether the case against Meng is strong enough.

A spokesman for Huawei had no immediate comment on the case against Meng on Friday.


Ms Meng's arrest while she was changing planes in Vancouver last Saturday was a serious breach of her rights, Reuters quoted the foreign ministry as saying.

Yesterday's court hearing is meant to decide on whether Meng can post bail or if she is a flight risk and should be kept in detention. The prosecutor said she is accused of fraud.

In a practice highly unusual in Chinese tradition, she adopted her family name not from her father but her mother, Meng Jun, who was Mr Ren's first wife.

The executive is the daughter of the founder of Huawei.

The 46-year-old executive was arrested in Vancouver while changing planes, ratcheting up tensions between the United States and China just as the countries' leaders agreed to a truce in their trade war. The editorial says the United States is "resorting to a despicable rogue's approach as it can not stop Huawei's 5G advance in the market" and "with the arrest, the U.S. is sending signals to the worldwide community that it is targeting Huawei". Huawei said the company had been given "very little information" about the charges and...

Executives, including Meng, then made a series of misrepresentations about the relationship between the two companies to the banks, inducing them to carry out transactions linked to Iran they otherwise would not have completed and which violated sanction laws, he told the court. Martin identified the firm as HSBC Holdings Plc, but he disputed the US allegation that Meng misrepresented anything to that financial institution.

The probe of Huawei is similar to one that threatened the survival of China's ZTE Corp, which pleaded guilty in 2017 to violating USA laws that restrict the sale of American-made technology to Iran. Even though the North American neighbors have a longstanding treaty governing extradition, it can take months, even years, for a defendant to be handed over, if at all.

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