Arrested Huawei CFO makes appearance in Canadian court as U.S. seeks extradition

Arrested Huawei CFO makes appearance in Canadian court as U.S. seeks extradition

Arrested Huawei CFO makes appearance in Canadian court as U.S. seeks extradition

A Chinese telecommunications executive is being accused of fraud by the USA government, which wants Meng Wanzhou extradited from Canada to face the charge.

She was arrested in Vancouver on December 1, and is sought for extradition by the United States.

The accusing the company of using subsidiary Skycom to do business with Iran, which would bypass sanctions. A spokesperson for the Department of Justice Canada told Daily Hive Meng is being sought for extradition by the United States.

Crown prosecutors allege Meng - the daughter of Huawei's founder - engaged in "conspiracy to defraud multiple financial institutions" in 2013 when she attempted to convince bankers that Huawei and a former Hong Kong subsidiary SkyCom were wholly separate entities.

The law enforcement action has also led to questions as to the involvement of high-level government officials in the Trump and Trudeau administrations.

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In a statement earlier this week, Huawei said the company complies with all laws and regulations in the countries where it operates, including applicable export control, sanction laws and regulations of the United Nations, the United States and the European Union.

He suggested that Meng has shown a pattern of avoiding the United States since becoming aware of the investigation into the matter, has no ties to Canada and has access to vast wealth and connections - and thus poses a flight risk. Meng is accused to have previously insisted the two were separate companies.

Meng's surprise arrest on Saturday is the latest salvo in a feud over trade and technology that has pitted the United States against China, with Canada caught in the middle.

Huawei's affordable smartphones have made strong inroads in the developing world, but the company has faced repeated setbacks in major Western economies over security concerns.

Canadian prosecutor John Gibb-Carsley said that the telecoms giant used a subsidiary, Hong Kong-based firm Skycom, to do business with Iran, bypassing U.S. sanctions.

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On Thursday, former prime minister Stephen Harper told Fox Business News that while he was in power he became increasingly concerned about allowing the use of equipment from Huawei and ZTE, another Chinese telecom-equipment manufacturer. This week, the UK's largest wireless provider, BT Group, announced that it will remove Huawei components from existing 3G and 4G networks and will not use the firm's equipment for 5G.

As US stocks plunged again on Friday amid confusion regarding the state of talks between Washington and Beijing, top White House economic advisor Larry Kudlow tried to delink the issue of Meng's arrests from the trade talks.

"You can rely on her personal dignity", he said, adding that to breach a court order "would be to humiliate and embarrass her father, who she loves".

"The bigger picture here is extremely promising", he tried to reassure, citing the chemistry between Trump and Chinese President Xi Jinping.

The Attorney General opposed Meng's release on bail.

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China's foreign ministry has pushed Canada to reveal the reason for the arrest and the Chinese Embassy in Ottawa has branded Meng's arrest a serious violation of human rights.

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