Huawei CFO arrested in Vancouver as US seeks extradition: Justice Department


Huawei's global chief financial officer arrested in Vancouver

Reuters was unable to determine the precise nature of the possible violations.

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 US-origin products to Iran and other countries in violation of United States export and sanctions laws.

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.

Asian indices plummeted today-Nikkei 225 down 1.9%, Hang Seng down 2.5%, Shanghai Composite down 1.7%-and Europe's Stoxx 600 is down 1.9% at the time of writing.

USA stocks tumbled in early trading Thursday following a sell-off in overseas markets, knocking more than 450 points off the Dow Jones Industrials Average.

The U.S. government has been concerned about Huawei for years because of uncertainty over its relationship with the Chinese government.

United States lawmakers have repeatedly accused the company of being a threat to United States national security, arguing that its technology could be used for spying by the Chinese government. Trump and Xi had dined in Argentina on December 1 at the G20 summit.

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Huawei's rise to dominance has generated controversy.

"The company has been provided with very little information regarding the charges and is not aware of any wrongdoing by Ms. Meng".

The U.S. Justice Department could not immediately be reached for comment.

The US Justice Department probe is being run out of the US attorney's office in Brooklyn, the sources said.

The arrest of Sabrina Meng, the chief financial officer of China's largest mobile phone marker, has been condemned by Chinese officials, who are calling for her immediate release. In comparison, the response of Chinese government was considerably strong and even "hostile", as some foreign reporters put it.

Her arrest is likely to heighten tensions between Washington and Beijing days after the world's two largest economies agreed on a truce in their growing trade conflict.

The "message is clear - the U.S. is closing the borders to many Chinese technology companies", said Neil Campling, co-head Global Thematic Group at Mirabaud Securities. Combine Apple, Cisco, and Booz Allen, and then imagine this company working very closely with the USA government, and you get a better sense of the significance of the company to China. In April, China appealed to the avoid damaging business confidence after The Wall Street Journal reported Washington was investigating whether Huawei had violated sanctions on Iran.

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An oil price around $60 suits the needs of producers and consumers and it should remain at that level in January, he said. The uncertainty over possible production cuts caused oil prices to dip on Wednesday as investors wait on a decision.

"I do think.the timing has a bearing on those talks in particular because Huawei is perhaps the most successful global company in China", said Mr Campling. Bolton also reportedly said the economic changes the U.S. wants to see from China could affect the country's political structure, although that wasn't the aim.

The arrest comes at a sensitive time for US-China relations. It appears that the arrest is likely in connection to an ongoing United States investigation into Huawei allegedly violating global sanctions against Iran and North Korea.

Huawei overtook Apple earlier this year to move into the No. 2 spot, according to Business Insider.

Ms. Meng previously served on Hong Kong's Skycom Tech Co.

"Public opinion in China will likely become more negative in respect to the trade war, and potentially against USA companies", Deutsche Bank analyst Zhiwei Zhang said on Thursday. "Huawei of course is a global player, and has made major inroads in developing countries, and even developed countries", Harwit said. But if the transcript the SCMP obtained is genuine, the dialogue helps explain the background of Meng's arrest in Canada.

Reacting to the arrest, US Senator Ben Sasse told Associated Press that China was aggressively engaged in undermining US national security interests, often "using private sector entities".

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