Huawei CFO Meng Wanzhou's Arrest In Vancouver Sends Global Markets Roiling

The reason for Wanzhou Meng's arrest was not immediately clear.					WANG ZHAO  AFP  Getty Images

The reason for Wanzhou Meng's arrest was not immediately clear. WANG ZHAO AFP Getty Images

Trump's national security adviser, John Bolton, acknowledged that he knew that Canada was planning to arrest Meng on Saturday just as all eyes were on the summit in Buenos Aires.

"China is working creatively to undermine our national security interests, and the United States and our allies can't sit on the sidelines", said US Senator Ben Sasse in a statement linking the arrest to US sanctions against Iran.

The arrest of Huawei's chief financial officer in Vancouver could severely complicate Canada's relationship with China, according to a former ambassador.

"One thing that is undoubtedly true and proven is the USA is trying to do whatever it can to contain Huawei's expansion in the world simply because the company is the point man for China's competitive technology companies", the editorial said.

'Wanzhou Meng was arrested in Vancouver on December 1, a Canadian government spokesperson told The Globe and Mail.

The arrest of Meng Wanzhou, who is suspected of trying to evade USA trade curbs on Iran, could further complicate a trade standoff between Beijing and Washington.

Longer term, however, the case will reinforce official Chinese urgency about developing domestic technology suppliers to reduce reliance on the United States, said Lam.

Huawei, the biggest global supplier of network gear used by phone and internet companies, has been the target of deepening USA security concerns.

McLeod said a publication ban had been imposed in the case and he could not provide further details.

"I think one of the key things is that we always have to be resilient no matter what the possible trigger could be", Scott Jones, director of the Canadian Centre for Cyber Security, told a press conference.

News of the arrest came the same day Britain's BT Group BT.L 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.

On December 5, Canadian authorities confirmed that Meng Wanzhou, chief financial officer and deputy chair of Chinese telecoms giant Huawei as well as a daughter of Huawei's founder, was arrested in Vancouver, British Columbia on December 1 at the request of US law enforcement authorities.

On Thursday, China's Ministry of Foreign Affairs Geng Shuang responded to news of her arrest, demanding clarification regarding the reason for her arrest, as well as her immediate release.

Wasn't another Chinese company also accused of Iran sanctions violations?

China could "take hostages" and is nearly certain to retaliate against the United States, experts say, after the stunning arrest of a top Chinese tech executive for allegedly trying to skirt sanctions on Iran.

The news pummeled stock markets already nervous about increased tension between the United States and China and prompted experts to predict that Beijing would retaliate against Canada.

But planning for the arrest was well underway as Mr Trump prepared for a dinner that he said later resulted in an "incredible" deal with Mr Xi - an agreement that may be in danger of unravelling after Chinese officials learnt of Ms Meng's capture and pending extradition to the US.

In a statement, it said it had complied with "all applicable laws and regulations where it operates, including applicable export control and sanction laws and regulations of the UN, US and EU".

If a US target is in one those countries, one option for the OIA is to contact Interpol to put out what is known as a red notice indicating there is an outstanding arrest warrant for that person. Unlike other big Chinese technology firms, it does much of its business overseas and is a market leader in many countries across Europe, Asia and Africa.

The U.S. government has taken a series of steps to block the firm from U.S. markets, including banning government purchases of Huawei gear and denying government help to any carrier that uses Huawei equipment. "The potential slowdown in global growth is also something the markets are pricing in".

China's embassy in Canada protested at the arrest and demanded her release.

USA media have reported that Huawei is under investigation for potential violations of U.S. sanctions against Iran.

Huawei is not the first Chinese telecoms equipment firm to face the ire of United States authorities.

According to The Wall Street Journal, since 2016, U.S. prosecutors have been examining whether Huawei violated United States trade sanctions with Iran.

"She would be the Ivanka Trump of Huawei", said Abramson, adding that Huawei is like the "Apple of China" and Meng is an extremely important business person.

No one answered the door when Postmedia News visited the Dunbar home Thursday afternoon, but neighbourhood residents said they recognized Meng from media reports, though they did not want to talk on the record.

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