The arrest of Huawei Technologies Co.'s Chief Financial Officer Wanzhou Meng in Canada is linked to potential violations of USA sanctions on Iran by the Chinese company.
Officials in some governments, particularly the United States, have voiced concern that his company is close to the Chinese military and government. According to the Canadian Justice Department, she was arrested in Vancouver on December 1st, the very same day that Donald Trump and Xi Jinping set down to dinner in Argentina.
In a statement, Huawei said Meng was changing flights in Canada when she was detained "on behalf of the United States of America" to face "unspecified charges" in NY.
As there is a publication ban in effect, which was requested by Meng, the department declined to provide any further detail of the extradition.
Ms Meng Wanzhou, who is also the daughter of the company's founder, is wanted for suspected sanctions breaches linked to Iran.
The Globe and Mail reports that US law enforcement agencies allege Ms. Meng tried to evade USA trade embargoes against Iran.
Meanwhile, the substantially more independent South China Morning Post reported today that Meng and her father recently told Huawei employees that strict compliance with regulations was sometimes not financially feasible and could be avoided. The U.S. has also banned all governmental agencies from buying or using Huawei phones or equipment.
"Huawei will be a top three player in the global communications market 20 years from now", Ren, 74, a former People's Liberation Army officer, said back in 1992.
But the damage had been done and the shockwaves rippled across Huawei with United States authorities launching a criminal investigation into alleged violations of sanctions on Iran.
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He has since been proved right with revenue projected to hit 655.9 billion yuan (US$102.2 billion) this year, a jump of 9.3% compared to 2017.
"The company believes the Canadian and USA legal systems will ultimately reach a just conclusion".
It also produces consumer electronics and this year overtook Apple to become the second-largest manufacturer of smartphones in the world, behind Samsung Electronics.
Huawei is one of the world's largest telecommunications equipment and services providers.
Huawei, for its part, has denied sharing information with the Chinese government, as has ZTE.
"What makes Huawei important is that it is a leader in developing technologies that will make China less dependent on US or European suppliers", he said.
USA telecommunications firms fear that partnering with Huawei by allowing it to sell their smartphones would anger the federal government and jeopardize future contracts. New Zealand followed suit in November, but said the issue was a technological one.
The arrest of a Chinese telecom executive in Vancouver is renewing fears of the communist government's ties to the cellular network giant.
Traders said the development smashed hopes surrounding the trade war ceasefire announced by President Trump after talks with his Chinese counterpart at the weekend.
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