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Top Huawei executive arrested on U.S. request

Discussion in 'The NF Café' started by mr_shadow, Dec 6, 2018.

  1. mr_shadow Minister of State Security Moderator

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    The daughter of Huawei’s founder, a top executive at the Chinese technology giant, was arrested in Canada and faces extradition to the United States, roiling global stock markets as it threatened to inflame Sino-U.S. trade tensions afresh.

    The shock arrest of Meng Wanzhou, 46, who is Huawei Technologies Co Ltd’s chief financial officer, raises fresh doubts over a 90-day truce on trade struck between Presidents Donald Trump and Xi Jinping on Saturday - the day she was detained.

    Her arrest, revealed late on Wednesday by Canadian authorities, is related to U.S. sanctions, a person familiar with the matter said. Reuters was unable to determine the precise nature of the possible violations.

    The arrest and any potential sanctions on the world’s second biggest smartphone maker could have major repercussions on the global technology supply chain. Shares in Asian suppliers to Huawei, which also counts Qualcomm Inc and Intel among its major suppliers, tumbled on Thursday.

    Huawei is already under intense scrutiny from U.S. and other western governments about its ties to the Chinese government, driven by concerns it could be used by the state for spying. It has been locked out of the U.S. and some other markets for telecom gear. Huawei has repeatedly insisted Beijing has no influence over it.

    Meng, one of the vice chairs on the company’s board and the daughter of company founder Ren Zhengfei, was arrested on Dec. 1 at the request of U.S. authorities and a court hearing has been set for Friday, a Canadian Justice Department spokesman said. Trump and Xi had dined in Argentina on Dec. 1 at the G20 summit.

    Sources told Reuters in April that U.S. authorities have been probing Huawei, the world’s largest telecoms equipment maker, since at least 2016 for allegedly shipping U.S.-origin products to Iran and other countries in violation of U.S. export and sanctions laws.

    Huawei, which generated $93 billion in revenue last year, confirmed the arrest in a statement. “The company has been provided very little information regarding the charges and is not aware of any wrongdoing by Ms. Meng,” it said.

    She was detained when she was transferring flights in Canada, it added.

    Chinese foreign ministry spokesman Geng Shuang told a daily briefing on Thursday that China had asked Canada and the United States for an explanation of Meng’s arrest, but they have “not provided any clarification”.

    The Chinese consulate in Vancouver has been providing her assistance, he added, declining further comment. On Wednesday, China’s embassy in Canada said it resolutely opposed the arrest and called for her immediate release.

    In April, the sources told Reuters the U.S. Justice Department probe was being handled by the U.S. attorney’s office in Brooklyn.

    The U.S. Justice Department on Wednesday declined to comment. A spokesman for the U.S. attorney’s office in Brooklyn also declined to comment.

    ‘EXTREMELY SHOCKING’

    Lu Xiang, an expert on China-U.S. relations at the state-backed Chinese Academy of Social Sciences, said the arrest of Meng is “extremely shocking”.

    “If someone from the United States is hoping to use threats to an individual’s personal safety in order to add weight in the talks, then they have most certainly miscalculated,” he said.

    “I believe that China’s government will use maximum force to fight for freedom and justice for Meng Wanzhou.”

    Arthur Kroeber, founder of Gavekal Dragonomics, said it was unlikely that Beijing would retaliate against the local U.S. business community, whose interests have partly overlapped with China’s in the trade war and been a source of leverage for Beijing.

    “You can play hardball with a small country but you can’t do it with the U.S.,” he said. “Actually it hurts them to make life difficult” for U.S. companies.

    A user of China’s Twitter-like Weibo platform said Chinese should boycott products made by U.S. tech giant Apple Inc and instead buy Huawei products to show support for one of China’s national champions.

    However, the topic ranked only 31st among trending items on Weibo as of Thursday afternoon, with many discussion threads apparently blocked, which is not unusual on China’s heavily censored Internet.

    Jia Wenshan, a professor at Chapman University in California, said the arrest “runs a huge risk of derailing the U.S.-China trade talks”.

    While Meng’s arrest comes at a delicate time in U.S.-China relations, it was not clear if the timing was coincidental.

    The probe of Huawei is similar to one that threatened the survival of China’s ZTE Corp, which pleaded guilty in 2017 to violating U.S. laws that restrict the sale of American-made technology to Iran.

    Earlier this year, the United States banned American firms from selling parts and software to ZTE, which then paid $1 billion this summer as part of a deal to get the ban lifted.

    Huawei has said it complies with all applicable export control and sanctions laws and U.S. and other regulations.

    News of the arrest came the same day Britain’s BT Group said it was removing Huawei’s equipment from the core of its existing 3G and 4G mobile operations and would not use the Chinese company in central parts of the next network.

    HONG KONG CONNECTION

    In January 2013, Reuters reported that Hong Kong-based Skycom Tech Co Ltd, which attempted to sell embargoed Hewlett-Packard computer equipment to Iran’s largest mobile-phone operator, had much closer ties to Huawei than previously known.

    Meng, who also has used the English names Cathy and Sabrina, served on the board of Skycom between February 2008 and April 2009, according to Skycom records filed with Hong Kong’s Companies Registry.

    Several other past and present Skycom directors appear to have connections to Huawei.

    Meng’s arrest drew a quick reaction in Washington.

    U.S. Senator Ben Sasse praised the move and said that it was “for breaking U.S. sanctions against Iran.” He added: “Sometimes Chinese aggression is explicitly state-sponsored and sometimes it’s laundered through many of Beijing’s so-called ‘private’ sector entities.”

    U.S. stock futures and Asian shares tumbled as news of the arrest heightened the sense a major collision was brewing between the world’s two largest economic powers, not just over tariffs but also over technological hegemony.

    Shares of Huawei suppliers slumped on Thursday as investors fretted over the arrest. Samsung Electronics fell 2.3 percent, while Chinasoft International Ltd sank as much as 13 percent.

     
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  2. Mider T Oh Christmas T!

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    I see this as a gift/offering.
     
  3. Canute87 Nuke Imminent

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    The good old trojan horse.
     
  4. Mider T Oh Christmas T!

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    :maybe...:LOS
     
  5. makeoutparadise I will have my revenge

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    Man this tradewar is getting weird
     
  6. Undertaker elect the dead

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    It's just kagebunshin with explosives. :uchihahaha
     
  7. Grey Wolf You Want Some Of My Wood Release?

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    Just gonna shake my head at this.
     
  8. Skaddix Well-Known Member

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    So @mr_shadow who is China Jailing to counter?
     
    Last edited: Dec 6, 2018
  9. mr_shadow Minister of State Security Moderator

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    The equivalent would be some Apple big-shot.
     
  10. Skaddix Well-Known Member

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    Damn Trade Wars Heating Up Then...
     
  11. Mider T Oh Christmas T!

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  12. ClandestineSchemer Well-Known Member

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    Actually no.
    Your thinking in terms of their function, rather than their leverage value.

    Other than Jobs, Apple big wigs don't have the same public outrage factor to the U.S.
    Taking a Kardashian would probably trigger more of a response among the average American public, than an Apple CEO, sadly.
    So it would probably be some American celebrity that ends up getting taken.
     
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  13. Zenith L'osservatore

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    China is the #1 threat to the West. The only rule the Chinese dictatorship respects is the iron fist.

    Anything that could undermine their world domination scheme is good, regardless of who gets on their case -- be it left or right wing.

    Huawei is in talks with the UK security department and are caving in to the demands from the UK because they don't want to be shut down from future networks (like 5g), but it's a fool's game because China is not to be trusted in the first place.
     
    Last edited: Dec 7, 2018
  14. mr_shadow Minister of State Security Moderator

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    Sure thing McCarthy. :maybe
     
  15. makeoutparadise I will have my revenge

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  16. Ignition RΞ –QUIΞM

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    My Samsung spied on me for 3 years and they are throwing a fit over a Chinese company?
     
  17. Zenith L'osservatore

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    I'm glad you're taking the humorous route -- I like people with a sense of humour. But unfortunately when it comes to China there's really little to laugh about since we're dealing with a country where the line between business and politics is non existent. The two cannot be broken apart as the CCP is part of the business fabric of the country and because of that needs not be allowed to partake in international operations or mergers & acquisitions.

    tl; dr: doing business with a Chinese company is doing business with the CCP -- there's no separation between public and private sector. I know you're a student/teacher in China (from what I can recall) and don't care about national interests but some of us do.
     
    Last edited: Dec 8, 2018
  18. makeoutparadise I will have my revenge

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    The American economy doesnt care about the human cost or the CCP we’ve been doing buisness with China since Nixon opened it up
     
  19. wibisana still newbie

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    Why her tho?
    She is financial officer
    Not RnD or someone who directly involve in tech stealing
     
  20. Detective ★★★★★★★

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  21. Zenith L'osservatore

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    China needs to get flattened.
     
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  22. mr_shadow Minister of State Security Moderator

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    You don't know the power of the Dark Side...
     
  23. Kroczilla Well-Known Member

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    He's not completely wrong though
     
  24. Kroczilla Well-Known Member

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    Except she's incompetent as fuck, there's no way her organisation could be engaged in skirting sanctions without her intimate knowledge
     
  25. stream Do something, Naruto!

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    She's the one who was the first to travel to North America, I guess. Not sure the EU would have arrested her on the basis of Iran sanctions. They're trying to protect their own companies from US retaliations.
     
  26. mr_shadow Minister of State Security Moderator

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    Holders of Hong Kong passports can only have one valid version at any one time, immigration authorities confirmed on Sunday night, after it was revealed that a Huawei Technologies executive recently detained in Canada was in possession of three travel documents from the city.

    The drama involving Sabrina Meng Wanzhou, detained in Vancouver at the behest of the US, spread to the city over the weekend after court documents showed she had at least seven passports – four from mainland China and three from Hong Kong.

    A spokesman for the Immigration Department said it did not comment on individual cases but confirmed that holders of Hong Kong Special Administrative Region passports could only possess one valid one at a time.

    There were circumstances where the holder could apply to have an old invalid – expired, damaged or out-of-date – passport combined with a new one, such as if there was still a valid visa in it, the department said. But the old passport itself would still be invalid.

    “Cross-linking of HKSAR passports means making an endorsement on both the previous and new passports to the effect that the previous passport bears a visa, which is still in force, but the previous passport shall be cancelled,” the spokesman said.

    “Any holder, therefore, shall not be in possession of more than one valid HKSAR passport at any time.”

    Legal experts and politicians in the city had questioned why Meng was able to possess multiple Hong Kong passports, with lawmakers calling on the department to investigate.

    Meng, chief financial officer at Huawei and a daughter of the Chinese telecom giant’s founder, was arrested on December 1 and faces extradition to the US, which alleges she covered up her company’s links to a firm that tried to sell equipment to Iran in defiance of sanctions.

    “In the past 11 years, Meng has been issued no fewer than seven different passports from both China and Hong Kong,” a letter from the US Department of Justice to Canada read, claiming she was a flight risk. It also listed the numbers of the seven passports.

    Earlier on Sunday, former secretaries for security Lai Tung-kwok and Regina Ip Lau Suk-yee – both of the pro-establishment New People’s Party – played down fears about holes in the city’s immigration system. The pair also previously headed the Immigration Department.

    The Post also learnt that Meng likely had just one valid Hong Kong passport, but carried her expired ones when travelling as they contained visas.

    “In general, it is possible for Chinese nationals who are permanent residents to own one valid Hong Kong passport … if for whatever reason it must be changed, say, the pages are all full or it is damaged, then the person will need to apply for another but the old one must be cancelled,” Lai said.

    “A person with multiple SAR passports is not news but the most important point is that at a certain point of time she only has one valid one.”

    Ip said from the court documents and media reports, there was insufficient evidence to show Meng possessed more than one valid Hong Kong passport but added that since she was arrested as an HKSAR passport holder, the government had a duty to follow up.

    “It’s possible she may have three in her possession, some may be expired or damaged but those should already be rendered [cancelled] and void,” Ip said.

    Lai said it was not illegal for Hong Kong passport holders to also have travel documents from elsewhere.

    Official data from the US Customs and Border Protection showed 33 departure and arrival records for Meng in the country between June 2014 and March 2017.

    She last used her first Hong Kong passport (KJ020XXXX) to enter the country in November 2014. The most recent entry using her second Hong Kong passport (KJ040XXXX) was in February 2016. She last used her latest passport (KJ047XXXX) in February 2017.

    She was allowed to stay for six months upon each entry.

    The Democratic Party’s James To Kun-sun, vice-chairman of the Legislative Council’s security panel, urged immigration officials to investigate to dispel doubts.

    On Saturday, University of Hong Kong law academic Eric Cheung Tat-ming noted that the three passports all started with “KJ”, suggesting they were issued within a short period and it was unlikely she could have gone through so many passports so quickly.

    However, a government source said all Hong Kong passports started with the initial K, while “KJ” only indicated the document was jumbo-sized, meaning 48 pages instead of the standard 32.

    The pro-Beijing Federation of Trade Unions, meanwhile, held a rally outside the US consulate on Sunday morning to protest against the “unreasonable arrest” of Meng and called for her immediate release.

    The 46-year-old executive was detained while changing planes in Vancouver, ratcheting up tensions between the US and China just as the countries’ leaders agreed to a truce in their trade war.

    China has also ramped up the pressure on Canada, accusing the country of “hurting the feelings of the Chinese people” and threatening “grave consequences”.

     
  27. Dragon D. Luffy of the Stars

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    You could swap all instances of "China" with "USA" in this post and it would still be correct.
     
  28. Dragon D. Luffy of the Stars

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    Polite reminder this is technically about Iran not China.
     
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  29. MrGayNight Member

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    So are they unironically threatening canada because they hurt people's feelings?
     
  30. wibisana still newbie

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