China Warns Of Serious Consequences If Huawei CFO Meng Wanzhou Is Not Released
China has issued a clear statement of protest over the arrest of Huawei’s CFO Meng Wanzhou. CNN reports that the global superpower has issued a summons to the U.S. and Canadian ambassadors to China because of Wanzhou’s detention in Vancouver on December 1.
The statement came from China’s Vice Minister of Foreign Affairs, Le Yucheng, and said that the arrest, “severely violated the Chinese citizen’s legal and legitimate rights and interests, it is lawless, reasonless and ruthless, and it is extremely vicious.”
As CNN notes, Canada is holding Wanzhou because she’s wanted in the US because Huawei has allegedly been bypassing American sanctions against Iran by falsely stating that a subsidiary of Huawei is a standalone company.
The statement from Yucheng was particularly tough on the U.S.’ northern neighbor, warning of “serious consequences” for Canada if she isn’t released. Canada “will have to bear the full responsibility for it,” it said.
An arrest warrant for Wanzhou was issued by a New York-based judge in August. At a hearing on Friday, a judge heard arguments about the prospect of bail but he did not make a decision on it. There will be another bail hearing on Monday. In her defense, her attorney said that Wanzhou, who is the daughter of the billionaire Huawei CEO Ren Zhengfei, is not a “flight risk” because she has close connections in Canada.
More troubles for #Huawei: CFO, Wanzhou Meng, has been arrested in Vancouver, Canada over the company’s potential violation of U.S. sanctions
More on @business: https://t.co/67YQxA9A5i pic.twitter.com/sinOmBEP1s
— Bloomberg Quicktake (@Quicktake) December 6, 2018
“We will continue to follow the bail hearing on Monday,” Huawei said in a statement released after the first hearing on Friday. “We have every confidence that the Canadian and US legal systems will reach the right conclusion.” It later stated that they are not aware of any “wrongdoing” on Meng Wanzhou’s part and asserted a commitment to follow the law.
The BBC reports that Wanzhou will face 30 years in prison if she’s found guilty in the U.S. She has officially been accused of “conspiracy to defraud multiple financial institutions.” because she allegedly told American financial institutions that a company called Skycom had no connections to Huawei.
Huawei is a global leader in the manufacturing of smartphones and other telecommunications gadgets. CNN notes the arrest of its CFO comes amidst a cooling of the trade rift between China and the United States after the G20 Summit in Argentina. Both sides agreed to a 90-day “truce” in which no additional tariffs will be implemented. President Trump had previously threatened to increase the tariff against Chinese goods from 10 percent to 25 percent and apply it to all items coming from that country.
