Published: Fri, December 07, 2018
Money | By Hannah Jacobs

White House, Trudeau seek to distance themselves from Huawei arrest

White House, Trudeau seek to distance themselves from Huawei arrest

Meng's detention also raised concerns about potential retaliation from Beijing in Canada, where Prime Minister Justin Trudeau sought to distance himself from the arrest.

Meng was changing flights in Canada when she was detained "on behalf of the United States of America" to face "unspecified charges" in New York, Huawei said in a statement.

"If you look at various reports from the USA government agencies, you can see that regulations have been tightened up significantly in past few months", added Mr Campling.

China's embassy in Canada has said it "opposes and strongly protests over such kind of actions which seriously harmed the human rights of the victim", which will raise more than a few eyebrows, given China's horrendous track record with human rights.

The arrest will not help the 90-day tariff truce the nations agreed after President Donald Trump and his Chinese counterpart Xi Jinping met at the G20.

In a statement, Huawei said it has no knowledge of any wrongdoing by Meng.

But planning for the arrest was well underway as Mr Trump prepared for a dinner that he said later resulted in an "incredible" deal with Mr Xi - an agreement that may be in danger of unravelling after Chinese officials learnt of Ms Meng's capture and pending extradition to the US.

Dean Garfield, president of the U.S. Information Technology Industry Council trade group, said innovation by U.S. companies often depends utterly on product development and testing by Chinese partners, not to mention component suppliers.

In 2012, the House of Representatives released a report warning Huawei poses a national security threat to the USA, and American companies and its government should avoid doing business with the company.

Huawei has clarified from their end that she faces unspecified charges in the NY. Early in April, Reuters had reported that since at least 2016, the us attorney's office in Brooklyn has been probing Huawei's alleged shipping of USA -origin products to Iran and other countries in violation of USA export and sanctions laws.

Huawei also recently surpassed Apple as the second biggest maker of cellphones after South Korea's Samsung Electronics Co. Either way, this is a huge escalation in the current turmoil between China and the US. Chinese technology has been a particular bugbear for the US president, who has justified imposing tariffs on Chinese imports with allegations of intellectual property theft by Chinese companies.

The probe of Huawei is similar to one that threatened the survival of China's ZTE Corp 0763.HK 000063.SZ , which pleaded guilty in 2017 to violating USA laws that restrict the sale of American-made technology to Iran.

The White House says Trump and his close aides were not aware the United States planned to place an extradition request for Meng ahead of his dinner with Xi on Saturday.

Meng "was arrested in Vancouver on December 1", a statement by Canada's ministry of justice said. The Globe and Mail newspaper cited law enforcement sources as saying she is suspected of trying to evade USA curbs on trade with Iran.

David Mulroney, a former Canadian ambassador to China, said USA and Canadian business executives could face reprisals in China.

In a filing with the agency, Huawei said the defence Bill shouldn't apply to disbursements of the communications subsidy. Such requests must be made through the U.S. Department of Justice's Office of International Affairs (OIA).

The Globe and Mail newspaper, citing law enforcement sources, said she is accused of trying to evade US curbs on trade with Iran.

"We know from the Chinese government that they want Chinese companies to share intelligence with the government, and therefore that's a real problem for other countries around the world who do not necessarily want their telecommunications systems piped straight into Beijing", said Stephanie Hare, an independent technology analyst. Several other past and present Skycom directors also appear to have connections to Huawei.

The arrest of Meng threatens to derail a fragile truce in a trade war between the USA and China.

There has always been concern that Huawei is not that separated from some of the Chinese security apparatus and there are suggestions its equipment could be used for spying.

This arrest could materially damage the relationship between the U.S. and China at possibly one of the most sensitive times between the two countries in their long and torrid history.

The arrest of a top Chinese technology executive should have been a triumphant moment for the Trump administration. After ceasing major operations as a result, ZTE paid another $1 billion as part of a deal to get the ban lifted.

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