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MoneyHuawei CFO arrest: 5 things to know about China's Huawei

16:55  06 december  2018
16:55  06 december  2018 Source:   cbsnews.com

Trudeau says he had advance notice of Huawei executive's arrest

Trudeau says he had advance notice of Huawei executive's arrest Prime Minister Justin Trudeau says Ottawa had a few days' prior notice of the arrest of an executive from the Chinese telecommunications giant Huawei following U.S. allegations the company violated sanctions on Iran. Authorities conducted the arrest without political interference, Trudeau said Thursday in his first comments on the arrest of Huawei's Chief Financial Officer Meng Wanzhou, which has further inflamed tensions between the U.S. and China. Meng was arrested in Vancouver on Saturday and is being sought for extradition by the U.S. A bail hearing has been set for Friday.

Canadian authorities have arrested the chief financial officer of Chinese tech giant Huawei Updated: December 5 , 2018 7:03 pm. Huawei CFO Wanzhou Meng arrested in Vancouver, faces READ MORE: U.S. senators urge Justin Trudeau to drop China ’ s Huawei from Canada’s upcoming

Huawei released a statement saying its CFO was arrested while changing planes in Vancouver and is facing charges in "the Eastern District of New York." " Huawei complies with all applicable laws and regulations where it operates, including applicable export control and sanction laws and regulations of

Huawei CFO arrest: 5 things to know about China's Huawei © Stringer . / REUTERS rts294rn.jpg

China is demanding that Canada release a Huawei Technologies executive arrested for possible extradition to the United States. Huawei's chief financial officer, Meng Wanzhou, was arrested Saturday in Vancouver, Canada.

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

Meng is also deputy chairman of the board and the daughter of Huawei founder Ren Zhengfei, as CBS News partner network BBC News reports,

In a statement, Huawei said 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. It added that it is "not aware of any wrongdoing by Ms. Meng."

Here are some key facts about the fast-growing telecoms equipment supplier.

Exclusive: Police called to attempted break in at Vancouver property linked to Huawei CFO

Exclusive: Police called to attempted break in at Vancouver property linked to Huawei CFO The 28th Avenue property is one of two owned by Wanzhou's husband in Vancouver.

The arrest of Meng Wanzhou, the chief financial officer , is likely to escalate tensions between the United States and China just as their trade SAN FRANCISCO — A top executive and daughter of the founder of the Chinese tech giant Huawei was arrested on Saturday in Canada at the request of the

OTTAWA: The chief financial officer of China ' s global telecommunications giant Huawei has been arrested in Canada and faces extradition to the United States, officials said Friday, triggering a strong protest by Beijing, which called for her immediate release. Meng Wanzhou's detention comes after

What is Huawei?

The privately held company, based in southern China's tech hub of Shenzhen near Hong Kong, is the world's largest supplier of network gear used by phone and internet companies. Huawei also recently surpassed Apple as the second biggest maker of cellphones after South Korea's Samsung Electronics Co. The company, founded in 1987 by a former military engineer, Ren Zhengfei, has 170,000 employees worldwide and says it has business in more than 170 countries.

Why is the company in the spotlight?

Canadian officials said Meng faces possible extradition to the United States. The U.S. Justice Department has refused comment. The Globe and Mail newspaper cited law enforcement sources as saying she is suspected of trying to evade U.S. curbs on trade with Iran. Huawei says the U.S. requested Meng's arrest and it is unaware of any wrongdoing. The company says it abides by all laws and rules where it operates.

Canadian Telecoms Face $1 Billion Cost to Remove Huawei Gear, Globe & Mail Says

Canadian Telecoms Face $1 Billion Cost to Remove Huawei Gear, Globe & Mail Says Canadian Telecoms Face $1 Billion Cost to Remove Huawei Gear, Globe & Mail Says

Shortly after the news hit that Huawei CFO Wanzhou Meng — also deputy chairwoman and the daughter of Huawei ’s founder — was arrested on Meng’s father Ren Zhengfei, a former army engineer who’s regularly named among China ’ s top business executives, has won acclaim at home

Canadian authorities on Saturday arrested Huawei Technologies CFO Wanzhou Meng in Vancouver at the request of U. S . authorities, according to a report. Wanzhou, the daughter of the technology giant’ s founder Ren Zhengfei, faces extradition to the U. S . on suspicion that the executive violated U. S

Huawei's Iran business

Huawei's business in Iran grew after Western companies withdrew to protest a crackdown on demonstrators in 2009. But the company said in late 2011 that it was limiting its business activity and no longer seeking new customers there because of an "increasingly complex situation."

In April, China appealed to the U.S. to avoid damaging business confidence after The Wall Street Journal reported Washington was investigating whether Huawei had violated sanctions on Iran. The report did not say what Huawei might be suspected of.

Huawei and ZTE

Both Huawei and ZTE Corp. have faced trouble with the U.S. and other governments over dealings with Iran and fears the Chinese companies' equipment might be used for spying. ZTE was nearly driven out of business this year when Washington barred it from buying U.S. technology over exports to North Korea and Iran.

Canada set for ‘penalty box’ with China over arrest of Huawei CFO Meng Wanzhou: former diplomat

Canada set for ‘penalty box’ with China over arrest of Huawei CFO Meng Wanzhou: former diplomat The arrest in Vancouver earlier this week of Huawei CFO Meng Wanzhou will put Canada in the "penalty box" with China for months to come. David Mulroney, former Canadian ambassador to China, told the West Block's Mercedes Stephenson that while he expects the arrest will put a chill on Sino-Canadian relations, it likely will not cause irreversible damage to the prospects of pursuing a free trade deal. READ MORE: Huawei CFO Meng Wanzhou wanted for fraud in U.S.

A sharp decline in technology shares has dragged down benchmark stock indexes in China and Hong Kong since the global chief financial officer of Chinese technology giant Huawei was detained in relation to alleged violations of US sanctions.

Read: Huawei CFO arrested in Canada at U. S . request for allegedly breaking Iran sanctions. Also: China may target U. S . executives after arrest of Huawei CFO , this expert warns. Hong Kong’ s Hang Seng Index HSI, -2.56% plunged 2.7% in early Thursday trading, with tech stocks taking the brunt.

President Donald Trump restored access after ZTE agreed to pay a $1 billion fine, replace its executive team and embed a U.S.-chosen compliance team in the company. Huawei seems much stronger commercially than ZTE, with the biggest research and development budget of any Chinese company and a vast portfolio of patents, making it less dependent on American suppliers.

What's next

It's unclear exactly what charges Meng could face if she is extradited to the United States. Security concerns have hampered Huawei's business in the U.S. as acquisitions were rejected and companies warned not to source network equipment from Huawei or ZTE.

That means the U.S. has less leverage over Huawei than over ZTE and some other Chinese companies. But the company is likely feeling pressure as other governments heed U.S. calls to limit Huawei's access to their telecoms networks and strategically vital technologies.

Follow @MSNMoneyCanada on Twitter.

‘Basically kidnapping’: China’s state media lashes out at Canada over arrest of Huawei executive.
The arrest of Huawei's CFO has angered China with its state-run media lashing out at Canada.

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