Chinese Tech Executive Faces US
December 07, 2018
A top Chinese technology executive faces U.S. charges related to
business dealings with Iran, a Canadian prosecutor said Friday,
after the executive's arrest rocked financial markets around the
In a packed courtroom in Vancouver, a Canadian prosecutor argued
that Meng Wanzhou, the chief financial officer of tech giant Huawei,
should be denied bail pending possible extradition to the United
States because she was a flight risk. She has spent most of the past
week at a women's detention facility in a suburb of Vancouver.
The prosecutor disclosed that Meng was wanted by the United States
for allegedly deceiving financial institutions about the
relationship between Huawei and another tech company, SkyCom, based
in Hong Kong, that is alleged to have sold U.S.-manufactured
technology to Iran, in violation of U.S. trade sanctions.
In the first glimpse of the case against Meng, prosecutors alleged
during the five-hour hearing that she was not truthful to U.S. banks
who had asked her about links between the two firms.
An attorney representing Meng, David Martin, told the court "there
is no evidence" that SkyCom was a subsidiary of Huawei during the
period in question, in 2013 and 2014.
The bail hearing is set to resume on Monday.
If extradited to the United States, Meng would face charges of
conspiracy to defraud multiple financial institutions.
The arrest of Meng in Vancouver, at the request of the United
States, surprised financial markets after Presidents Donald Trump
and Xi Jinping agreed to a trade truce last weekend in Buenos Aires,
Stocks plummeted Thursday after news came out of Meng's arrest,
which followed months of already shaky markets affected by the
U.S.-China trade war.
Trump sounded a note of optimism on Friday about the trade talks
with China, tweeting that "China talks are going very well!"
U.S. and Canadian governments have so far said little about the Meng
case. But China has demanded her release, saying she violated no
laws in Canada or the United States.
Meng is the daughter of Huawei founder Ren Zhengfei, a former
engineer in China's People's Liberation Army. Chinese state media
have argued that the United States is abusing the law to hurt the
company's international reputation.
However, concerns about Huawei have been growing for some time.
Since 2012, the U.S. government has raised alarm about suspicions
that Huawei's hardware may have a technical back door that could be
used by the Chinese government to gather intelligence.
Huawei has denied that its products pose any security risk and says
it is a private company.