China demands Canada release Huawei executive arrested in Vancouver

Trouble

Trouble

Yields on top-rated German government bonds held near six-month lows in risk off environment, while those on benchmark 10-year U.S. Treasuries were near a three-month low at 2.886 percent.

The arrest by Canadian authorities of Meng stems from an allegation that another company which she managed violated a USA ban against selling technology to Iran.

News of Meng's arrest provoked strong protest from the Chinese embassy in Canada, which called it a violation of its citizens' rights while demanding the US and its neighbor "rectify wrongdoings" and free Meng.

USA stock markets plunged again Thursday after a Chinese technology executive was arrested in Canada, escalating U.S. The Wall Street Journal reported in April that the US Justice Department was investigating whether Huawei violated US sanctions on Iran.

London's main index fell by as much as 2.5 per cent this morning as blue-chip companies were burnt by fears that China and the United States trade war could intensify after a key Huawei executive was arrested overnight.

"The company believes the Canadian and USA legal systems will ultimately reach a just conclusion".

Huawei released a statement saying its CFO was arrested while changing planes in Vancouver and is facing charges in "the Eastern District of NY".

The SCMP obtained a transcript of an internal question-and-answer between Meng and her father, Huawei's founder Ren Zhengfei.

Huawei Technologies' chief financial officer Meng Wanzhou was arrested Saturday in Canada and faces extradition to the U.S. Meng was taken into custody on behalf of the U.S. while she was transferring flights in Vancouver, the tech company said.

For the same reason, Australia's government blocked China's telecom giant Huawei from its 5G mobile network last summer.

She appeared in court on Wednesday, and is due back for a bail hearing on Friday. Later, the foreign ministry said it was still waiting for details on why she was arrested, and said trade talks should continue.

The statement went on to say how Huawei complies with all applicable laws and regulations where it operates, "including applicable export control and sanction laws and regulations of the United Nations, USA and European Union". "A fragile trade truce between China and the USA that was already foundering is now at greater risk of unraveling in relatively short order", Prasad said.

A source familiar with the matter told Reuters the arrest stems from Huawei Technologies Co Ltd's [HWT.UL] alleged violation of us sanctions on Iran.

In June, Canada's Globe and Mail newspaper reported that United States lawmakers warned the Canadian government that Huawei posed a major cybersecurity risk.

While another Chinese tech company, ZTE, fell foul of the USA sanction regime, "no arrest was made back then", Yip added, reflecting the seriousness of the Huawei saga.

But casting Huawei as the Chinese equivalent of Apple understates its reach and importance - Huawei also manufacturers a tremendous amount of the equipment used by phone and internet companies, as well as providing IT consulting services both in China and around the globe.

China's embassy in Canada said it resolutely opposed the arrest and called for Meng's immediate release.

Sen. Ben Sasse, R-Neb., linked the arrest to the American sanctions against Iran.

In 2012, the House of Representatives released a report warning Huawei poses a national security threat to the USA, and American companies and its government should avoid doing business with the company.

Stocks of most major chip manufacturers fell after news of the arrest broke, with chipmaker stocks usually serving as a bellwether for investor confidence in U.S.

Lenovo has also come under attack in the USA for allegedly selling compromised computers that expose users to spying.

In exchange, ZTE agreed to pay a hefty $1 billion fine and put an additional $400 million in escrow in case of future violations. "We think this will force China to take a more aggressive and confrontational approach with the USA".

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