China Demands Release of Telecom Executive Arrested in Canada

Asian markets tumble, China tech hit after Huawei arrest

Despite Meng's arrest the same day that deal was announced, Beijing officials were standing by the agreement on Thursday.

The Wall Street Journal reported in April that American authorities are investigating whether the Chinese tech company violated sanctions on Iran.

How do USA authorities arrange arrests in foreign countries?

Global markets have plummeted - and Australian shares are expected to follow - after a fresh twist in the US-China trade war. "The company believes the Canadian and USA legal systems will ultimately reach a just conclusion", said a statement from Huawei.

Canadian Prime Minister Justin Trudeau said he was given a few days advance notice of the intention of Canadian authorities to arrest her but said it was the decision of law enforcement and there was no political interference.

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

Meng, who is one of the vice chairs on the Chinese technology company's board and the daughter of company founder Ren Zhengfei, was arrested on December 1 and a court hearing has been set for Friday, a Canadian Justice Department spokesman said, according to the Globe and Mail.

Officials in some governments, particularly the United States, have voiced concern that his company is close to the Chinese military and government.

Canada has not joined the U.S., Australia and New Zealand in banning Huawei's technology from being used in 5G wireless networks because of cybersecurity fears. He said Meng's legal rights must be ensured, adding that neither Canadian nor American officials had so far responded to China's concerns.

"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.

"The arrest of Huawei's CFO by the Canadian government for potential violations of Iran sanctions is welcome", he said.

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.

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A Chinese statement said Meng did not break any USA or Canadian laws and that Beijing expected Canada to "immediately correct the mistake" and release her from custody.

Meng is a prominent member of Chinese society as deputy chairman of the board and the daughter of company founder Ren Zhengfei.

The Huawei executive's arrest comes at a critical time for US-China relations.

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.

National security advisor and mustache aficionado John Bolton said in an interview with NPR that not only did they know Meng was going to be cuffed by Canadian authorities, but he was actually dining with Chinese President Xi Jinping when the arrest occurred. "Huawei complies with all applicable laws and regulations where it operates, including applicable export control and sanction laws and regulations of the United Nations, U.S. and European Union".

"This reminds the Chinese, and ourselves, that we are part of an worldwide order backed by the U.S".

This is not the first time a Chinese technology company has found itself in hot water with the US.

Just days after President Trump announced a "BIG leap forward" in relations between the USA and China, tensions between the two economic heavyweights are escalating once more.

The two sides had agreed to meet and resolve their differences within 90 days, but Meng's arrest has thrown this into doubt, bringing back the spectre of huge tariffs and the global economic damage they would cause.

China's embassy in Canada said it resolutely opposed the arrest and called for Meng's immediate release. She is the chief financial officer of Huawei Technologies, a huge telecommunications company. It appears that the arrest is likely in connection to an ongoing USA investigation into Huawei allegedly violating worldwide sanctions against Iran and North Korea.

"We can expect China to retaliate against Canada very vigorously", he said by email. "The Chinese government should seriously mull over the US tendency to abuse legal procedures to suppress China's high-tech enterprises. We certainly don't inform the president on every one of them", he said of the arrest.

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