Huawei's "Prince's Children" Arrested for Violation of Iran Sanctions
When China and the United States resumed trade talks, Meng Wanzhou, the daughter of the founder of the mainland technology giant Huawei Group, the vice chairman and chief financial officer of the group, Meng Wanzhou, was arrested on the 1st of this month (the day when the Chinese and US leaders met) while transiting in Canada.Canada's Justice Department said it was acting at the request of the United States and may extradite her to the United States.China lodged solemn representations with the United States and Canada, demanding an immediate explanation of the reasons for the detention and the release of Meng Wanzhou.According to foreign reports, the case is related to Huawei's violation of US sanctions against Iran.Huawei stated that it is not aware of any wrongdoing by Meng Wanzhou, and believes that the legal system of the United States and Canada will reach a fair conclusion.U.S. officials have yet to respond to the incident.
The incident sparked concerns about the deterioration of Sino-US relations and the resumption of the trade war.The news of Meng Wanzhou's arrest was first exposed by the Canadian media.Canada's Globe and Mail reported on Wednesday that at the request of the United States, Canadian authorities arrested Meng Wanzhou at Vancouver International Airport on the 1st of this month.A spokesman for the Canadian Ministry of Justice said that the case is scheduled for a bail hearing on Friday local time, and that Meng's application for a "non-reporting order" is in force, so he is unable to provide more details for the time being.According to Canadian media reports, on Wednesday local time, Meng Wanzhou appeared in a court in Vancouver.Wearing a dark green tracksuit, she sat quietly in the prisoner's bench with a Mandarin interpreter beside her, nodding and smiling at several neatly dressed men sitting in the public gallery.
Huawei issued a statement on Weibo yesterday morning, confirming that Meng Wanzhou has been detained, the United States is seeking extradition, and Meng is facing unspecified charges in the Eastern District of New York.The company said it was not aware of any wrongdoing by Meng Wanzhou, and emphasized that Huawei complies with all applicable laws and regulations of the countries where it does business, including the United States.
Reuters quoted people familiar with the matter as saying that Meng Wanzhou's arrest was related to violations of US sanctions against Iran.Shenzhen-based Huawei is China's largest telecommunications equipment maker.The Wall Street Journal reported in April that the U.S. Department of Justice was conducting a criminal investigation into whether Huawei violated the U.S. government’s export ban on Iran.If the company is found to have intentionally violated U.S. export laws, Huawei may face criminal penalties, surveillance, and company executives may be prosecuted.
The 46-year-old Meng Wanzhou also serves as Huawei's chief financial officer and is regarded as Ren Zhengfei's successor.Foreign Ministry spokesman Geng Shuang said yesterday that China has made clear its stern position to Canada and the United States, demanding that the reasons for the detention be clarified immediately, Meng Wanzhou released, and her legitimate rights and interests effectively protected.
The Chinese embassy in Canada criticized that "the Canadian police arrested a Chinese citizen who did not violate any laws of the United States and Canada at the request of the United States" and "seriously violated human rights." China will take all actions to protect the legitimate rights and interests of Chinese citizens.
The arrest of Meng Wanzhou happened at an extremely sensitive period in Sino-US relations. That night happened to be dinner with US President Trump in Argentina and they agreed to a 90-day ceasefire in the trade war."The arrest of members of the Huawei founder's family shows that tensions between the (China and the U.S.) are rapidly escalating," said Pempel, a professor of political science at the University of California, Berkeley.Republican Senator Rubio, a member of the U.S. Senate Intelligence Committee, issued a statement yesterday welcoming Canada's arrest and urging Meng's immediate extradition to the United States.
The outside world is concerned about whether the incident will worsen Sino-US relations and affect Sino-US trade negotiations.It was reported earlier that Vice Premier Liu He, who is in charge of negotiations, may visit the United States from the 12th to the 15th of this month. It is unknown whether the itinerary will change because of this.
Another Chinese telecommunications equipment manufacturer, ZTE, was also accused of selling products to Iran and North Korea in April this year and was sanctioned by the United States. It was prohibited from having any business dealings with American companies including parts, software and technology for seven years.After China's high-level intervention, the United States finally lifted the ban, but ZTE had to pay the United States huge compensation, change management and allow American personnel to station.Since Huawei is larger than ZTE, the outside world believes that the impact of Meng Wanzhou's arrest will be greater than the ZTE incident, and it will be more difficult to resolve.
