Posts Tagged ‘Ren Zhengfei’

Huawei: Why the Chinese telecoms giant is in the cross hairs

December 12, 2018

Sabrina Meng Wanzhou, the 46-year old CFO of Chinese telecoms giant Huawei and daughter of its founder Ren Zhengfei, has been granted bail by a Canadian court, setting up a protracted legal fight over extradition to the United States.

Logo von Huawei (Reuters/H. Hanschke)

Meng was arrested in Vancouver earlier this month at the request of US authorities, who have accused her of fraudulently representing Huawei to get around US sanctions on Iran.

Her case has now become embroiled in the wider trade war between China and the US after US President Donald Trump suggested he may intervene if it would help secure a broad deal with Beijing. The arrest came the same day Trump and Chinese President Xi Jinping declared a 90-day truce in their trade war during summit talks in Buenos Aires.

By Meng Jing
South China Morning Post

Although Meng’s arrest prompted outrage in China, Beijing is walking a fine line between defending one of the crown jewels of the country’s tech industry and preventing a nationalist backlash that could derail a potential trade deal with Washington.

But what is Huawei and why is it so important to the future of relations between China and the US? Here is what you need to know.

 What is Huawei?

Established in 1987, Huawei is a Chinese tech champion that sells smartphones and telecoms equipment across the world. Headquartered in China’s southern coastal city of Shenzhen, Huawei is China’s top smartphone maker, and overtook Apple as the second-largest smartphone vendor globally in the second quarter this year – a feat it also maintained in the third quarter, according to IDC data.

Perhaps more importantly, Huawei is now the world’s largest telecom equipment supplier and has a key role to play in China’s ambition to lead the way in next-generation mobile telecoms infrastructure – known as 5G. Competing with the likes of Ericsson and Nokia Oyi, Huawei was the only major equipment-maker to achieve an increase in market share in 2017.

Who created Huawei?

Huawei’s founder Ren Zhengfei is a noted figure in China’s business world and moves in the highest government circles. The 74-year-old self-made billionaire is the son of schoolteachers and grew up in a mountainous town in China’s poorest province, Guizhou. A survivor of China’s great famine between 1958 and 1961, Ren graduated from the Chongqing Institute of Civil Engineering and Architecture.

He worked in the civil engineering industry until 1974 when he joined the People’s Liberation Army as an engineer – a connection that still provokes questions in the West about Huawei’s ties to the Chinese army and government. Ren was an elected member of the 12th National Congress of the Communist Party of China.

Today Huawei does business in more than 170 countries and regions globally, has around 180,000 employees and a sales volume of over US$39 billion. The low profile Ren is ranked 83rd in Forbes’ China Rich list with a net worth of US$3.2 billion.

Who owns Huawei?

Unlike its Chinese rival ZTE Corp, which is a state-backed enterprise, Huawei is a private company collectively owned by its employees. Not being familiar with Western stock option systems, Huawei’s founder Ren Zhengfei says he designed an employee stock ownership plan at the inception of the company.

At a time when China was still struggling with the aftermath of the Cultural Revolution, being a private owner and hence open to being perceived as a capitalist – Ren felt that not owning the company was the least dangerous thing for a founder to do, according to a Harvard Business Review story which studied Huawei’s profit sharing model. Ren himself holds a 1.4 per cent stake in Huawei, according to the company’s 2017 annual report.

How did Huawei become successful?

The vast domestic market, the timing of overseas expansion and heavy investment in research and development have all been important positive factors for Huawei. But many analysts attribute the secret of its success to a unique company culture, sometimes dubbed “wolf-culture” for being fearless and aggressive. Workers have also been known to pass out on office mattresses from exhaustion. It has strong discipline and nobody – not even Ren – has their own driver or flies first class on the company dime.

Why and how was Meng arrested?

Meng was detained in Vancouver on December 1 at the request of US authorities. Meng was accused by the US of helping Huawei cover up violations of US sanctions on Iran, according to Canadian prosecutors. She is said to have told financial institutions that affiliate Skycom was a separate company in order to conduct business in the country, when in fact it was a Huawei subsidiary.

“Meng and other Huawei employees repeatedly lied about the nature of the relationship between Huawei and Skycom and the fact that Skycom operated as Huawei’s Iran-based affiliate in order to continue to obtain banking services,” the US authorities said in the arrest request delivered to Canadian authorities.

Meng has denied any wrongdoing and said in her personal affidavit for bail that she will contest the allegations if surrendered to the US.

Why is Huawei banned in the US and in some other markets?

The US government has for years seen Huawei as a national security threat due to fears about its association with China’s government, the Chinese Communist Party and its military. This has been of particular concern when it comes to networking gear and the possibility for breaches of data privacy.

In February, US intelligence officials warned Americans not to buy Huawei devices because they could be used to spy on users. The Chinese smartphone maker was supposed to enter the US via mobile network AT&T, but the deal fell through at the last minute.

The US in August enacted the National Defence Authorisation Act to ban the government’s use of Huawei and ZTE technology products and services on concerns over their connections with Chinese intelligence. US security experts have warned of a range of potential security risks, including but not limited to the capacity to control telecommunications infrastructure and even conduct undetected espionage.

Japan, a US ally, this week excluded Huawei and ZTE from public procurement, adding to the list of countries that have pushed back against the Chinese technology company on security issues. Australia and New Zealand have also effectively blocked Huawei from their roll-out of 5G network infrastructure, with the UK and Canada also weighing up the possible security risks posed by Huawei.

What has Huawei said in its defence?

Huawei has consistently denied any connections with the military, saying that it is a private company that is part-owned by its employees.

When Australia took the decision to block Huawei from its 5G infrastructure in August on national security grounds, Huawei said the decision was not aligned with the long-term interests of the Australian people, and denied Australian businesses and consumers the right to choose from the best communications technology available.

It has said all countries need to recognise the importance of setting better common standards, adopting ­industry best practice and implementing risk-mitigation procedures to ensure that there is an objective basis for choosing technology vendors.

https://www.scmp.com/tech/big-tech/article/2177648/huawei-why-chinese-telecoms-giant-and-its-cfo-are-caught-middle-china

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(This will likely add to the perception of China as a nation that does not obey the rule of law, many in the U.S. say)

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What to Do About Huawei?

December 12, 2018

China’s turn toward totalitarianism should not shake Western confidence in freedom.

It will be a different kind of cold war, if a new cold war is in the offing with China.

The daughter of a top-ranking Chinese business leader has been sitting in a Canadian jail, subject to a U.S. extradition request. In arguing for bail in Canada, her lawyer cited facts that never would have been cited in the case of a Soviet official arrested while passing through Vancouver’s airport: She owns two homes in Vancouver. Three of her children and her husband were educated in the city. Her family members still summer there.

Image result for Huawei, pictures, logo

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 — (Wang Yi hints that human rights laws are being violated)

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Huawei CFO Case Hinges on an Offshore Puzzle

December 11, 2018

Defense says telecom giant cut ties to firm doing work in Iran; opaque trail leads to Mauritius

Why China's Huawei Matters

Why China’s Huawei Matters
Chinese telecom giant Huawei has long caused tension between Washington and Beijing. WSJ’s Shelby Holliday explains what the company does and why it’s significant. (Photo: Aly Song/Reuters)
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HONG KONG—In a presentation to bankers in 2013, Meng Wanzhou, the chief financial officer of Huawei Technologies Co., explained that her company no longer had a stake in Skycom Tech Co., a Hong Kong company that did business with Iran, and that she had quit its board, according to the executive’s defense.

Ms. Meng said she had served on the Skycom board to ensure it complied with trade rules, according to newly released defense filings that cite the 2013 PowerPoint presentation to HSBC Holdings Ltd.

Ms, Meng’s lawyer said Friday that she and Huawei severed ties to Skycom in 2009 and can’t be held responsible for its activities in the years that followed.

U.S. prosecutors say Skycom remained under Huawei’s control; between 2010 and 2014, they say, Skycom was used as a front for Huawei’s dealings with Iran in an arrangement that duped banks into approving millions of dollars in transactions that violated sanctions.

Read the rest:

https://www.wsj.com/articles/arrest-of-huawei-cfo-hinges-on-an-offshore-puzzle-1544466378

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From Reuters

A Hong Kong-based firm that attempted to sell embargoed Hewlett-Packard computer equipment to Iran’s largest mobile-phone operator has much closer ties to China’s Huawei Technologies than was previously known, corporate records show.

Cathy Meng, Huawei’s chief financial officer and the daughter of company founder Ren Zhengfei, served on the board of Hong Kong-based Skycom Tech Co Ltd between February 2008 and April 2009, according to Skycom records filed with Hong Kong’s Companies Registry.

Reuters reported last month that in late 2010, Skycom’s office in Tehran offered to sell at least 1.3 million euros worth of HP gear to Mobile Telecommunication Co of Iran, despite U.S. trade sanctions. At least 13 pages of the proposal were marked “Huawei confidential” and carried Huawei’s logo. Huawei said neither it nor Skycom ultimately provided the HP equipment; HP said it prohibits the sale of its products to Iran.

Huawei has described Skycom as one of its “major local partners.”

But a review by Reuters of corporate records and other documents found numerous financial and other links over the past decade between Huawei, Meng and Skycom, suggesting a closer relationship between the two firms. In 2007, for instance, a management company controlled by Huawei’s parent company held all of Skycom’s shares. At the time, Meng served as the management firm’s company secretary.

Meng, who also goes by the name Meng Wanzhou, appears to be a rising star at Shenzhen-based Huawei, now the world’s second-largest maker of telecommunications equipment. During a presentation of Huawei’s financial results last week in Beijing, she met foreign journalists in an on-the-record session that was reported to be a first for anyone in her family.

“We will honor our commitment to transparency and openness,” she told the journalists.

Meng did not respond to a request for comment for this article. Huawei declined to make her available for an interview, or answer any specific questions about the company’s or her links to Skycom.

In an emailed statement, Huawei said, “The relationship between Huawei and Skycom is a normal business partnership. Huawei has established a trade compliance system which is in line with industry best practices and our business in Iran is in full compliance with all applicable laws and regulations including those of the UN. We also require our partners, such as Skycom, to make the same commitments.”

A Hong Kong accountancy and secretarial firm that Skycom has listed in financial filings as its corporate secretary, did not respond to a request for comment.

The U.S. House Intelligence Committee recently criticized Huawei for not answering questions about its Iranian operations and for failing to “provide evidence to support its claims that it complies with all international sanctions or U.S. export laws.” The sanctions on Iran are designed to deter it from developing nuclear weapons; Iran says its nuclear program is aimed purely at producing domestic energy.

Huawei, which has contracts with many Iranian telecoms, says it is reducing its business in Iran.

Image result for Canicula Holdings, photos

STATUS REPORT

Corporate filings offer few clues about the operations of Skycom, which like Huawei is a private company.

Telecommunications managers who have worked in Iran say that many employees at Skycom’s offices are Chinese nationals who wear Huawei badges or carry Huawei business cards. On LinkedIn.com, several telecom workers list having worked at “Huawei-skycom” on their resumes.

Skycom’s corporate filings show that since it was first incorporated in Hong Kong in 1998, the firm has had a succession of different controlling shareholders, including individuals and offshore companies.

In its annual return filed in May 2007, Skycom reported that all of its shares had been transferred three months earlier from two companies in the British Virgin Islands to a Hong Kong firm called Hua Ying Management Co Ltd. Hua Ying’s shares were held by Shenzhen Huawei Investment & Holding Co Ltd, Huawei’s parent company, according to Hua Ying’s filings.

Meng was then Hua Ying’s company secretary, corporate records show.

In November of that year, all of Skycom’s shares were transferred to a company called Canicula Holdings Ltd, which is registered in Mauritius. Huawei declined to answer any questions about the transfer or whether it is related to Canicula.

According to Mauritius company records, Canicula’s registered address is a local company called Multiconsult Ltd. An employee there declined to answer any questions.

Besides Meng, several other past and present Skycom directors appear to have connections to Huawei. In its most recent annual return, Skycom lists a director named Hu Mei, who also appears to have a Huawei email address and was listed in an internal Huawei employee directory, according to a person familiar with the matter. A former Skycom director, Wu Shuyuan, also has a Huawei email address and was listed in an internal Huawei directory, this person said.

Reached for comment, both confirmed they had served or serve as directors of Skycom but declined to answer any questions about Huawei. Huawei declined to answer any questions about them.

n early 2010 – the same year Skycom offered to export the HP equipment to Iran – a London firm called International Company Profile that prepares credit reports, released a “company status report” on Skycom in Tehran. The report said ICP had interviewed Skycom’s financial manager there.

Skycom “is a subsidiary of Huawei Technologies Corporation,” the report stated.

The report also listed Skycom’s chief executive as Zhang Hongkai. In 2009, the website of China’s embassy in Iran published a press release announcing that Huawei had signed a cooperation agreement with an Iranian university. The article reported that the agreement was co-signed by “Mr. Zhang Hongkai, CEO from Huawei Iran Office.”

Zhang could not be reached for comment. Huawei declined to answer questions about the credit report.

Additional reporting by Grace Li in Hong Kong; Edited by Simon Robinson

Huawei, Skycom and the Offshore Puzzle That Leads To Mauritius

December 11, 2018

Meng Wanzhou is accused of trying to hide links between the two companies but that ploy will fail

South China Morning Post

Image result for Huawei, Skycom pictures

Skycom Tech, the Hong Kong company at the centre of Huawei Technologies’ alleged violation of US sanctions on Iran, shared the same email domain as the Chinese telecoms equipment giant, public records show.

The contact email address listed for Skycom’s website, Skycom.com.hk, is domain@huawei.com, the same domain as Huawei’s official website, according to records available online at the Hong Kong Domain Name Registration Company.

The digital link between the two firms could prove important in the case against Huawei’s chief financial officer, Sabrina Meng Wanzhou.

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She is being held in Vancouver awaiting extradition to the US where prosecutors believe she deliberately misrepresented Skycom as a completely separate entity in an attempt to sidestep sanctions preventing Huawei doing business in Iran.

The case has rocked already strained relations between China and the US.

Canadian prosecutors alleged in court filings that Huawei used Skycom to circumvent the US sanctions. They claim the latter was in fact “an unofficial subsidiary” of Huawei, even though Meng had denied to US bankers any direct connection between the two companies.

The domain registration records give the name Shen Fen as the contact person for Skycom. The telephone and facsimile numbers listed for the website are located in a Huawei building in Shenzhen, according to the phone number website 114Best.com.

An attempt by the Post to contact Shen Fen found that the phone number was invalid.

Ming Pao, a Chinese newspaper, reported on Monday that Shen was Huawei’s corporate lawyer, and indeed a court ruling from May shows a Huawei employee named Shen Fen represented the company in a trademark dispute case.

The employee worked in Huawei’s intellectual property department, according to Ming Pao, but the Post was unable to reach Shen by phone at the company’s head office in Shenzhen.

Skycom’s website domain was registered in 2013, long after a Huawei subsidiary sold it in 2007 to Canicula Holdings, an offshore company registered in Mauritius, according to the company registration records.

The fact Skycom registered a Huawei domain six years after the two firms supposedly severed their links may add weight to the claims of US prosecutors that the latter used its “unofficial subsidiary” to carry out business in Iran.

Several Huawei spokespeople were approached for comment but did not immediately respond.

Former employees of Skycom have stated that its employees had Huawei email addresses and badges, according to a Bloomberg report citing a Canadian court filing.

Huawei, the world’s largest maker of telecommunications equipment, stands accused of violating the US government’s sanctions against Iran, and Meng could face trial in the US for misleading financial institutions into breaching those sanctions.

Meng, who is also the daughter of Huawei founder Ren Zhengfei, was arrested in Vancouver while she was en route to Mexico from Hong Kong, at the request of the US Justice Department.

The case against Meng came at a high-stakes moment for the relationship between the world’s two largest economies, as they try to reach a resolution to their trade war.

Chinese President Xi Jinping and US President Donald Trump struck an agreement on a 90-day truce on December 1, almost nine months after the Trump administration made the first move to hit China with import tariffs on US$50 billion worth of its goods.

Technology is increasingly seen as the crux of the rivalry between the two nations, as China’s grand strategy to boost its hi-tech sectors, named “Made in China 2025”, has drawn the ire of the Trump administration.

Many are wondering if Huawei might suffer the same fate as ZTE, the Chinese telecommunications equipment company on which the US imposed a ban from April to July, a move which brought the firm to the brink of collapse. The ban prevented ZTE from buying parts and software from the US after it violated the country’s sanctions against North Korea and Iran.

Reuters first reported in 2013 that Huawei and Meng had close ties to Skycom which, according to Canadian prosecutors, tried to sell US equipment to Iran despite the sanctions.

https://www.scmp.com/business/companies/article/2177512/huawei-and-skycom-firm-accused-breaching-us-sanctions-shared-web

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Wall Street Journal:

Huawei CFO Case Hinges on an Offshore Puzzle

https://www.wsj.com/articles/arrest-of-huawei-cfo-hinges-on-an-offshore-puzzle-1544466378

As part of his visit to China, Mauritian Prime Minister Pravind Kumar Jugnauth visited Huawei’s Executive Briefing Center and held talks with Peng Zhongyang, Senior Vice President at Huawei. He said that Huawei is a trusted partner of the country for digital transformation.

More in Whe Wall Street Journal article

https://www.wsj.com/articles/arrest-of-huawei-cfo-hinges-on-an-offshore-puzzle-1544466378

Huawei mistrust imperils China tech ambitions

December 11, 2018

China’s ambitious drive to dominate next-generation 5G technology faces a sudden reality check as fears spread that telecom companies like Huawei could be proxies for Beijing’s intrusive security apparatus.

Fifth-generation mobile communications are the next milestone in the digital revolution, bringing near-instantaneous connectivity and vast data capacity.

They will enable the widespread adoption of futuristic technologies such as artificial intelligence and automated cars and factories — advances China is desperate to lead.

Analysts say mounting concern over Huawei imperils its lead over the market

Analysts say mounting concern over Huawei imperils its lead over the market Analysts say mounting concern over Huawei imperils its lead over the market AFP/File

With 5G’s rollout expected to gain pace in coming years, the race to dominate standards and control security and data traffic underpins much of the current high-tech rivalry between the United States and China, technology experts said.

Huawei’s status as a leading world supplier of the backbone equipment for telecoms systems — mostly in developing markets — gives China an inside track.

But analysts said mounting concern over Huawei imperils that lead.

“This is a big threat because if Huawei loses access to lucrative Western markets, this will impact its ability to grow and finance R&D,” said Paul Triolo, a global technology policy expert with risk consultancy Eurasia Group.

It also could hinder the deployment of 5G networks in China, which are “a key piece of China’s overall effort to upgrade its industrial base”, he added.

The US defence establishment fears China’s dominance of critical 5G infrastructure could enable it to disrupt American military communications or otherwise wage asymmetrical warfare in a confrontation.

Triolo warned of potentially disastrous fallout for China if US law-enforcement efforts — in the spotlight after the arrest of Huawei executive Meng Wanzhou in Canada — result in a ban on sales of US chips and other vital technology to Huawei.

“This could be catastrophic for China’s tech ambitions, threatening (Huawei) itself, supporting industries, and future development,” he said.

– Burglar with a key –

New Zealand recently joined Australia and the US in essentially barring use of Huawei equipment in domestic networks. Following Meng’s arrest on December 1, similar sentiments have arisen from Tokyo to Brussels.

On Monday, Kyodo news agency reported Japan’s top three telecom companies would forego equipment from Huawei and another big Chinese player, ZTE.

US officials and lawmakers have long expressed concern that China could use its tech firms to steal trade secrets — accusations Chinese foreign ministry spokesman Lu Kang dismissed on Monday as “ridiculous.”

“These people do not provide a single (piece of) evidence to show how Huawei affects their national security,” Lu said.

Distrust of Huawei stems in part from the background of founder Ren Zhengfei, a 74-year-old former People’s Liberation Army engineer.

The US has already put the squeeze on ZTE, which faced insolvency earlier this year after the Trump administration temporarily banned American companies from selling it vital components.

Huawei has secured many leading 5G patents and supplied networking equipment for telecom systems around the world that will inevitably carry huge amounts of US data, putting that information at potential risk.

“One way to envision (the threat) is to imagine the person who built your house decides to burgle it,” James Lewis, a technology policy expert at the Center for Strategic and International Studies, wrote in an analysis last week.

“They know the layout, power system, access points, (and) may have kept a key.”

– ‘We don’t like it’ –

But US firms like Intel and Qualcomm produce the advanced chips critical for 5G, giving Washington huge sway over Huawei, which depends heavily on those technologies.

If the US cuts off Huawei’s chip supply and further isolates the company, the blow “will be huge, bigger than ZTE”, said Shi Yinhong, an expert on China-US relations at Beijing’s Renmin University.

“If Huawei is hit hard, China will lose its 5G lead.”

China observers say President Xi Jinping’s more assertive global stance bears much of the blame for Huawei’s troubles.

Late leader Deng Xiaoping famously observed that China’s strategy should be to “hide your strength, bide your time”, to avoid triggering a crippling foreign backlash.

But Xi has dumped that, accumulating one-man power, scrapping term limits and openly declaring China’s ambition to become a high-tech power.

Beijing also passed a law in 2015 obliging its corporations to aid the government on matters of national security.

These moves have sparked alarm in the West, and the US has accused Chinese entities of massive cyber-attacks.

“One of the biggest criticisms of Xi in China is: ‘did he take the stage too fast, did he try to push Chinese power too soon?'” said Christopher Balding, a China expert at Fulbright University in Saigon.

“He has behaved as near-totalitarian and is acting similarly internationally and people are saying ‘we don’t like it.'”

AFP

Huawei CFO Cites $12 Million Home and Health Troubles in Bail Bid — Hypertension, struggles to eat solid food, sleep disorder, cancer survivor

December 10, 2018

Meng’s father’s net worth was estimated at $3.2 billion

Meng Wanzhou suffers from hypertension and struggles to eat solid food. She has a sleep disorder. She’s willing to put up a couple of multi-million-dollar homes as collateral.

Those are some of the arguments lawyers are wielding in a closely watched attempt to free the Huawei Technologies Co. finance chief. Her arrest Dec. 1 unsettled global markets and thrust China’s largest technology company into the heart of sensitive negotiations between the world’s two largest economies. In court filings, her attorneys paint a picture of a cancer survivor who’s undergone multiple surgeries and needs daily medication to cope with a plethora of health issues, while outlining how her entire family has deep roots in Vancouver, where she’s being held.

The CFO’s bail hearing resumes Monday in the Canadian city after Friday’s proceedings yielded no result. The 46-year-old mother of four, accused of guiding a global effort to mask violations of sanctions on sales to Iran, has languished in jail since her arrest. It’s an unprecedented effort to hold accountable a senior executive who’s considered part of China’s inner circle — the daughter of billionaire Huawei founder Ren Zhengfei. Meng’s lawyers argue their client has no criminal record and doesn’t pose a flight risk.

Meng’s team outlined her health issues in unusual detail. A survivor of thyroid cancer who also suffers from severe hypertension and sleep apnea, she needs daily access to drugs, they said.

“I continue to feel unwell and I am worried about my health deteriorating while I am incarcerated,” she said in a filing. “I currently have difficulty eating solid foods and have had to modify my diet to address those issues. My doctor has for years provided me with daily packages of medications.”

Read more: Huawei’s Ren Zhengfei Built an Empire. Trump Could Tear it Down
The other prong of the argument revolves around how Vancouver plays a special role for Meng — as it does for many a wealthy Chinese — a place to buy property, educate her children and just let her hair down from time to time. Meng would carve a few weeks out of her punishing travel schedule every year for a break in the city, according to court documents. She’d time it for the summer, when her children would be there. Just last August, she was seen strolling through a local park, snapping photos with her in-laws.

A home registered to Xiaozong Liu, husband of Meng, in Vancouver.

Photographer: Ben Nelms/Bloomberg

Meng, who first visited Vancouver about 15 years ago, bought a six-bedroom house with her husband Liu Xiaozong in 2009 that’s now assessed at C$5.6 million ($4.2 million), according to property records and an affidavit by Meng read aloud in court. In 2016, they bought a second property, a brick-and-glass mansion set in a 21,000-square-foot lot assessed at C$16.3 million. Purchased with mortgages from HSBC, she’s offered to post the family’s equity in both as part of her bail.

“She would not flee,” Meng’s defense lawyer David Martin responded. “She has a home here.”

Read about Huawei CFO’s ties to Vancouver

But her place of retreat has now become a jail. On Dec. 1, Meng stepped off a Cathay Pacific flight from Hong Kong around noon, and planned a 12-hour stopover in Vancouver before heading on to Mexico. Instead, she was arrested and now faces a U.S. extradition request on charges she conspired to defraud banks — including HSBC — so that they unwittingly cleared millions of dollars in transactions linked to Iran, in violation of U.S. sanctions.

Extradition cases can sometimes take years — whether she spends that time in a cell or under house arrest may hinge in part on her ties to Vancouver and if they’re considered deep enough to stop her from fleeing. The bail hearing is expected to take up all of Monday as her defense team calls witnesses, including security companies. Prosecuting attorneys for the Crown on their part have focused on her wealth — her father is estimated to be worth more than $2 billion — to justify their stance that she would flee.

She has an incentive to flee home to China, which has no extradition treaty with the U.S., and she has the vast resources and connections to remain out of reach indefinitely, Crown attorney John Gibb-Carsley argued.

“I’m not saying that wealthy people can’t get bail,” he said Friday at the six-hour bail hearing as more than 100 spectators watched from a glass-walled gallery. “But I’m saying in terms of magnitude to feel the pull of bail, we are in a different universe.”

Documents provided by Meng’s attorneys as evidence of her long-standing ties to Canada.

Source: The Supreme Court Of British Columbia Court Filings

Meng’s attorneys, in turn, argue that every case must be considered on its merits without fixating on an individual’s circumstances. On the Crown’s point that Meng has been avoiding the U.S. as a sign of complicity, her lawyers say that stems in part from growing American hostility to Huawei, which has been shut out of government contracts and labeled a national security threat. “In essence, the company abandoned the U.S. market,” according to a filing.

Meng’s case has transfixed investors on both sides of the Pacific as Washington and Beijing scramble to avert higher tariffs on $200 billion of goods that could depress an already slowing Chinese economy — with potentially grave global consequences. The move by the U.S. to reach across borders to arrest a prominent Chinese national comes as U.S. political leaders seek to contain the Asian country’s rapid ascendancy, while holding it accountable on allegations of intellectual property theft and protectionism.

A Huawei PowerPoint presentation referencing its relationship with Skycom.

Source: The Supreme Court Of British Columbia Court Filings

Meng’s father’s net worth was estimated at $3.2 billion, according to Gibb-Carsley. A million-dollar bail to the family is equivalent to a C$156 bail for an upper-middle class Canadian family with C$500,000 in assets, he said.

Beyond her health and local ties, Meng’s attorneys have attacked the central premises in her case. They say it was Huawei’s legal team — rather than finance — that prepared a PowerPoint presentation on Iran that Crown lawyers have held up as evidence she was complicit in an internal attempt to flout sanctions.

Meng is “an accomplished individual of previous good character, who has strong roots and ties to Canada and to the Vancouver community,” Martin wrote in a filing. “She presents no threat to public safety, and due to her health issues incarceration would be extremely punitive.”

Read about how Meng rose through the ranks despite her father’s rebuke

— With assistance by Yuan Gao

Will Arrest Of Huawei Exec Meng Wanzhou Derail U.S.-China Trade Talks — Trump Says “No”

December 9, 2018

China has ratcheted up the pressure on Canada to release the detained executive of Huawei Technologies over the weekend by threatening “grave consequences”

China critical of US side’s unilateral hegemonic behaviour — “This is a dilemma, and it is difficult to predict what will happen.”

Donald Trump Upbeat On China Talks; Aides Downplay Huawei Arrest Friction

Donald Trump Upbeat On China Talks; Aides Downplay Huawei Arrest Friction

“China talks are going very well,” Donald Trump said on Twitter, without providing any details (File)

WASHINGTON: U.S. President Donald Trump sounded an optimistic note about trade negotiations with China as two of his top economic advisers downplayed friction from the arrest of a senior executive of Chinese telecom equipment maker Huawei Technologies.

“China talks are going very well,” Trump said on Twitter, without providing any details.

Major companies have expressed concerns about how the arrest of Huawei Chief Financial Officer Meng Wanzhou in Canada at the request of U.S. authorities would affect U.S.-China relations or that it would cause a potential backlash against American firms operating in China.

Photographer: Lluis Gene/AFP/Getty Images

Meng, 46, the daughter of Huawei’s founder, appeared in a Vancouver court for a bail hearing as she awaits possible extradition to the United States in the investigation of whether Huawei violated U.S. sanctions against Iran.

Image result for Xi Jinping and Huawei founder Ren Zhengfei, photos

Photo: Xi Jinping and Huawei founder Ren Zhengfei

Larry Kudlow, director of the White House’s National Economic Council, told CNBC he did not believe Meng’s arrest would “spill over” into the talks with China aimed at increasing Beijing’s purchases of U.S. farm and energy commodities, lowering Chinese tariffs and making sweeping changes to China’s policies on intellectual property and technology transfers.

Kudlow said the investigation of whether Huawei violated U.S. sanctions against Iran was on a “separate track” from the trade talks and was a matter of national security and U.S. law.

“You can’t break the law. You break the American law, you break the Canadian law, you’ve got to pay the consequences of that,” Kudlow said of the Huawei case. “That was the case with other companies, and will continue to be the case. These are issues of national security.”

Continued concerns over U.S.-China trade relations caused stocks to sell off on Friday, with technology shares leading the decline. The Nasdaq Composite fell 2.4 percent, with the Dow Jones Industrial Average falling 2.1 percent and the S&P 500 index down 1.9 percent in afternoon trade.

White House trade adviser Peter Navarro told CNN that the U.S.-China trade talks and the Huawei arrest “are two separate events,” calling the timing of Meng’s arrest a coincidence.

Navarro said the arrest was the result of “the bad actions of Huawei,” adding there was a “frightening” risk that the Chinese government could use the company’s products for spying.

“The timing was unusual, but the actions were legitimate.”

Asked if the United States would walk away from trade talks if U.S.-China differences were not resolved in 90 days, Navaro said: “It’s not a question of walking away. It’s a question of moving forward on the strategy, which is to simply raise the tariffs” on Chinese goods.

Kudlow expressed optimism that the United States and China will make substantial progress during the 90-day period allocated for talks, ending around March 1.

“I think there will be a lot of success in the next 90 days; President has indicated, that if there’s good solid movement and there’s good action, he might – he might – be willing to extend the 90 days,” Kudlow told CNBC.

He reiterated that the Trump administration was expecting immediate movement from China on purchases of agricultural commodities and energy and added that he expected Chinese autos tariffs to be reduced. He said it was a positive sign that China was willing to discuss core issues related to intellectual property theft, forced technology transfers and computer hacking of U.S. companies.

However, Kudlow said U.S. Trade Representative Robert Lighthizer, who will lead the American side in the talks, will be looking to ensure that any agreements can be fully enforced and monitored to ensure follow-through by Beijing.

Huawei CFO Meng Wanzhou (picture-alliance/dpa/M. Shipenkov)

The chief financial officer Meng Wanzhou of China’s Huawei Technologies

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Beijing escalates dispute over arrest of Sabrina Meng Wanzhou by lodging diplomatic protest

  • China official Xinhua news agency attacks Canadian PM Justin Trudeau for not telling Beijing in advance and ‘letting this nasty thing happen’
PUBLISHED : Sunday, 09 December, 2018, 12:01pm
UPDATED : Sunday, 09 December, 2018, 1:12pm
China has ratcheted up the pressure on Canada to release the detained executive of Huawei Technologies over the weekend by threatening “grave consequences” and accusing Canada of “hurting the feelings of the Chinese people”, escalating the case into one of the worst diplomatic rows between Beijing and Ottawa.

Chinese foreign vice-minister Le Yucheng on Saturday summoned Canadian ambassador John McCallum to lodge a “strong protest” against the arrest of Sabrina Meng Wanzhou in Vancouver and urged Ottawa to release Meng immediately, according to a brief foreign ministry statement.

Meng, the chief financial officer at Huawei and a daughter of the Chinese telecom giant’s founder, was arrested in Vancouver on December 1 and faces extradition to the United States, which alleges that she covered up her company’s links to a firm that tried to sell equipment to Iran in defiance of sanctions.

The arrest of Meng in Canada, which took place on the same night that Chinese President Xi Jinping and US President Donald Trump dined together in Buenos Aires, has infuriated Beijing.

The official Xinhua news agency published an editorial on Sunday morning condemning the arrest as an “extremely nasty” act that had caused “serious damage to Sino-Canada relations”.

“According to the words of the Canadian leader, he had known of the action in advance,” Xinhua said, referring to the fact that Canadian Prime Minister Justin Trudeau – whom it did not did name directly – had a few days’ notice of the arrest.

“But he didn’t notify the Chinese side. Instead, he let this kind of nasty thing to happen and assisted the US side’s unilateral hegemonic behaviour – this has hurt the feeling of Chinese people,” Xinhua added.

Huawei exec Meng Wanzhou

The last time that Beijing called Canada of hurting the feelings of the Chinese people was more than a decade earlier in 2007 when the then prime minister Stephen Harper hosted the Dalai Lama.

People’s Daily, the mouthpiece of the ruling Communist Party, published a similarly strongly worded statement, condemning Canada for arresting Meng and threatening to take action against Ottawa if Meng is not released.

“The Canadian side must realise clearly that there’s no vagueness between justice and arbitrariness,” the People’s Daily editorial reads.

“The Canadian side must correct its wrongs and immediately stop its infringement of the legitimate rights and interests of the Chinese citizen to give the Chinese people a right answer so that it can avoid paying a dear price.”

The joint condemnation by China’s foreign ministry, Xinhua and the People’s Daily against Ottawa is an unusual step, reflecting how seriously Beijing is taking the case and its determination to set Meng free.

While China did not specify what action it would take to inflict pains on Canada, the harsh wording suggests that it has plans to retaliate.

These could range from the freezing of diplomatic exchanges to the suspension of trade and would be likely to be set in motion if Meng is extradited to the US.

David Mulroney, a former Canadian ambassador to China, told Reuters on Friday that there will probably be “a deep freeze with the Chinese in high-level visits and exchanges”.

“The ability to talk about free trade will be put in the ice box for a while. But we’re going to have to live with that. That’s the price of dealing with a country like China,” Mulroney was quoted as saying.

Shi Yinhong, director of Renmin University’s Centre for American Studies and an adviser to the State Council, said that the Meng incident put China in a bind between the need to show it can protect its business people abroad without spooking other advanced industrial nations with a strong response against Canada.

“China is concerned that in the future more of its important people abroad will be seen as a threat, and that their safety will become an issue.”

“On the other hand, especially in the context of the comprehensive tension between Beijing and Washington, China has an interest to maintain and improve relations with other advanced industrial countries.

“If China takes a very strong revenge against Canada, it will hurt these relations. This is a dilemma, and it is difficult to predict what will happen.”

Adam Austen, a spokesman for Canadian Foreign Minister Chrystia Freeland, said Saturday there is “nothing to add beyond what the minister said yesterday”.

Freeland told reporters on Friday that the relationship with China was important and valued, and Canada’s ambassador in Beijing has assured the Chinese that consular access will be provided to Meng.

A court hearing over whether Meng should be bailed will continue on Monday.

Additional reporting by Reuters

https://www.scmp.com/news/china/diplomacy/article/2177091/beijing-blames-canada-huawei-arrest-and-threatens-grave

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Huawei CFO Meng Wanzhou: a goldfish in the bowl that is the world’s biggest story

December 8, 2018

How the drama of Meng Wanzhou’s bail hearing played out in a Vancouver courtroom, behind two layers of bulletproof glass

South China Morning Post

When Huawei CFO Sabrina Meng Wanzhou appeared on Wednesday in a Vancouver courtroom, clad in an unbranded green tracksuit, the moment was witnessed by a single reporter from the local Vancouver Sun newspaper who happened to notice her name on the hearings list that morning.

The arrest of a top Huawei executive is 'a shot into the heart' of China's tech ambitions, analysts say
Meng Wanzhou, chief financial officer of Huawei, attends an investment forum in Moscow in October 2014. Meng has been arrested in Canada and detained for potential U.S. sanctions violations. (Maxim Shipenkov / EPA/Shutterstock)
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Image result for Ren Zhengfei, Xi Jinping, pictures

Photo: Xi Jinping and Huawei founder Ren Zhengfei

By the end of the day, Meng’s arrest in Canada at the request of Washington was the biggest story in the world.

Media and members of the public line up outside the British Columbia Supreme Court to attend Meng’s bail hearing in Vancouver on December 7, 2018. Photo: AFP

And when her bail hearing resumed on Friday, Meng entered court to see about 100 reporters, craning to look at her through two layers of bulletproof glass.

Faced with overwhelming media interest, court authorities shifted proceedings to the high-security, high-capacity Courtroom 20, purpose-built 16 years ago for the Air India terror trial.

The glass encasement gave the court and its players the look of goldfish in a bowl.

“We’ve booked these 20 seats,” a lawyer on Meng’s team told an armed sheriff overseeing the public gallery. The lawyer waved her hands over the two front rows closest to Meng and tried to shoo away reporters to make room for Huawei’s team of executives and an overflow of the tech firm’s lawyers.

The sheriff nodded at the reporters who grumbled and made way, but two courtroom artists who had dashed to the best seats in the house were digging in.

“Well, we need to see everything and we were here first,” said one, defiantly unpacking her sketch pad. The lawyer sighed.

A courtroom sketch of Meng’s bail hearing. Photo: Reuters/Jane Wolsak

The sheriff pointed to a seat that appeared to have been reserved by Team Huawei in the front row.

“Are you saving this seat for the husband?” the sheriff asked, loudly. Reporters leaned forward.

The lawyer sighed again and pulled the sheriff into a tight whisper. The seat remained empty for the entire morning.

The phalanx of Meng’s supporters could be roughly divided according to the cut of their suits. There were the Huawei executives, crisp and perfect, including senior vice-president for corporate affairs Scott Bradley. Then the lawyers, local and Chinese, dressed for a day in the office, some joking lightly with reporters.

Members of the media outside the British Columbia Supreme Court on December 7, 2018. Photo: AFP

But the centre of gravity was held by two men in the front row in dowdy grey suits, whispering in Mandarin. One wore an enamel Chinese flag pin on his lapel.

“I have no comment,” he said, before he could even be properly asked to provide one or identify himself, as he walked briskly away during a break in proceedings.

Meng’s voice went unheard during the whole hearing. Her local lawyer, David Martin, greeted her warmly in the morning, clasping both her hands in his. Like a scene from a silent film, they laughed and chatted soundlessly behind the glass, with the audio turned off before the court was in session.

Court sketch of Meng and her translator. Photo: Reuters/Jane Wolsak

There were no subtitles, unfortunately. “Any lip-readers in the house?” joked a reporter.

But Meng’s initial body language belied the stakes, which were soon laid out by John Gibb-Carsley, the lawyer representing Canada’s attorney general. Meng was accused of multiple fraud charges in the US, he said, which related to supposed breaches of sanctions against Iran. She faces up to 30 years’ jail on each count.

Later, Martin told Mr Justice William Ehrcke that Meng posed no flight risk and should be granted bail.

File photo of Huawei founder and CEO Ren Zhengfei. Photo: AFP

To flee would shame her in front of her father, Ren Zhengfei – who is Huawei’s founder – and all of China, said Martin.

“Her father would not recognise her. Her colleagues would hold her in contempt. She would be a pariah,” he said.

Meng leaned forward in her seat and dabbed at her eyes with a tissue.

When the hearing adjourned, she was led away with her head bowed, a goldfish in a bowl that is the biggest story in the world.

https://www.scmp.com/news/world/united-states-canada/article/2177026/huawei-cfo-sabrina-meng-wanzhou-goldfish-bowl-worlds

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‘Read this quickly before it’s gone’: how China’s media covered or ignored the arrest of Huawei executive

December 7, 2018

Logo von Huawei (Reuters/H. Hanschke)

Canada’s Globe and Mail newspaper reported on Wednesday that Meng Wanzhou (孟晚舟), the daughter of the founder of Chinese telecoms giant Huawei, Ren Zhengfei (任正非), had been arrested in Canada and faces extradition to the United States on charges of violating US trade sanctions on Iran.

Meng is also the deputy chair of Huawei, which in recent months has faced an international backlash over concerns the company is linked to the Chinese state and poses a security risk.

Meng Wanzhou

Meng Wanzhou. File photo: Huawei.

Little information is available about Meng’s arrest, which reportedly occurred on December 1. Ian McLeod, a spokesman for Canada’s Justice Department, told the Globe and Mail: “As there is a publication ban in effect, we cannot provide any further detail at this time. The ban was sought by Ms Meng.”

So far, Chinese mainstream media have been largely silent on the case. A handful of media have picked up an early news release from the official China News Service that closely follows the press release from the Chinese Embassy in Canada.

That release registered a strong protest, saying that Meng’s arrest had “seriously harmed the human rights of the victim.”

The China Daily, published by the Information Office of the State Council, released an article in Chinese earlier today quoting the official release from Huawei saying that Meng has done nothing wrong and they are confident there will be a fair result.

Huawei Canada

Huawei, Canada. Photo: Wikicommons.

The official Xinhua News Agency did not release a report in English until around 5PM today Beijing time. That report again closely followed the remarks from the Chinese Embassy in Canada and the official Huawei release.

As of 8:30PM Beijing time there was still no Xinhua story in Chinese carried prominently on the service’s website, though far down the list of news was a transcript of the foreign ministry press conference.

Xinhua was focussed instead on Xi Jinping’s trip to Spain, Portugal and Latin America, and on the 40th anniversary of China’s “reform and opening” policy.

No doubt the timing of the Meng Wanzhou story, coming less than two weeks ahead of the formal anniversary on December 18, will also be a point of great sensitivity for the Party leadership.

Xinhua

Xinhua homepage, December 6 2018. Photo: Screenshot.

There were also stories on both the Chinese and English sides of Caixin. Interestingly, though, while the English report is prominent, the Chinese report was pushed lower down at around 4pm Beijing time, emphasising in the headline the fierce response from the Chinese Embassy in Canada — and two hours later that story was not visible at all on the Chinese homepage.

The English-language page at Caixin gave the Meng Wanzhou arrest story central play, and by 5pm Beijing time also paired it with the story of Huawei’s troubles in the UK.

The Chinese homepage of Caixin at around 4pm Beijing time on December 6 showed the Huawei story of the arrest of Meng Wanzhou well below other featured articles.

By 5pm Beijing time on the same day, no stories about Huawei or its CFO, Meng Wanzhou, were visible on the Chinese-language Caixin homepage.

Caixin

The English-language page at Caixin gives the Meng Wanzhou arrest story central play, and by 5PM Beijing time also pairs it with the story of Huawei’s troubles in the UK. Photo: Screenshot.

But lack of information on this breaking story, and relative silence from traditional and state-run media cannot forestall the conversation in China. There has been a flurry of chatter and speculation on Weibo and WeChat, although of course, that conversation is in a state of constant emergence and disappearance.

Here, courtesy of the Weiboscope, are a few of the more recent Weibo posts that have been removed, most dealing directly with the original report from the Globe and Mail:

  • 2018-12-06 13:29:55 | #ImmigrantObserver # MengWanzhou (Sabrina Wanzhou Meng) born 1972, is the daughter of Huawei founder and CEO Ren Zhengfei, and Meng Dongbo (孟东波), the father of her mother, Meng Jun (孟军), served as deputy governor of Sichuan province. She at the very least has Chinese, American and Canadian passports!
  • 2018-12-06 07:31:11 | [Meng Wanzhou, Daughter of Huawei CEO Ren Zhengfei, arrested in Canada] Canada’s Global and Mail newspaper reported that the daughter of Huawei CEO Ren Zhengfei, Huawei’s CFO Meng Wanzhou, has been arrested in Canada and faces extradition to the U.S. American law enforcement authorities have said that Meng Wanzhou is suspected of violating U.S. trade sanctions against Iran. http://t.cn/EyXG9Ao
  • 2018-12-06 07:24:50 | [Foreign Media: Ren Zhengfei’s daughter and Huawei CFO Meng Wanzhou has been arrested in Vancouver] News, Beijing time, December 6. According to Canada’s Globe and Mail, quoting Ian McLeod of Canada’s Justice Department, Canada has arrested Huawei CFO Meng Wanzhou. http://t.cn/EyXbNi9

Marco Rubio

@marcorubio

If @Huawei has been helping violate US sanctions by transferring US technology to they should be barred from operating in the US or from purchasing US technology.

488 people are talking about this

A Weibo search for “Meng Wanzhou” directs readers to two posts from state media, one from CCTV Online and the other from the Global Times. The CCTV post is a short video relaying the response from China’s Foreign Ministry, calling on Canada and the U.S. to immediate release Meng and to “protect the legitimate rights of the person involved.”

The Global Times post similarly focuses on what at present seems right now to be the core message of the leadership: Meng must be immediately released.

The battle by ordinary citizens and other non-official voices to have a say on the Meng case, over and against the official urge to control the development of the issue online, could be glimpsed openly on social media.

In a post made around 8:30pm to Weibo, Zhu Wei (朱伟), an entrepreneur with more than two million followers on the platform, posted the following message:

“This topic is so sensitive. The headline article on my WeChat public account ‘Teacher Zhu Wei’ (朱伟老师), ‘Chinese Embassy in Canada: We Demand the Immediate Return of Meng Wanzhou’s Freedom’ was deleted by the relevant departments. Right now I’m reposting it on Weibo, so read it really quickly before it’s gone.”

Huawei phone

Photo: Kārlis Dambrāns/Flickr.

In a Weibo post, entrepreneur Zhu Wei tells readers to quickly read his post already deleted from the WeChat platform — before it once again disappears.

The article in question by Zhu Wei, offered a rundown of the official statements from the foreign ministry and from Huawei, and then included a paragraph by paragraph translation of the original report from the Globe and Mail.

Another post from the Weibo account of the Putian Media Group (莆田广播电视台) offered readers a video from talk Meng Wanzhou gave in English on September 26 at the World Academic Summit in Singapore.

The post, which bore the hashtag “#MengWanZhouArrested,” noted that Meng’s talk had been about “how to promote industry innovation.” But the video was soon disabled, yielding the message: “We’re sorry, this video cannot be displayed. Please view another video.”

Some commenting on WeChat and other platforms voiced anger over Meng’s arrest, viewing it through the lens of US-China competition, as a provocative act and a sign that the United States and other Western countries want to keep China down, even stripping it of its “right to develop.”

Wechat

File photo: Sinchen.Lin/Flickr.

In a piece shared widely on WeChat, Mei Xinyu (梅新育), a financial writer with more than one million followers on Weibo, wrote:

“Finally, I want to emphasise again the assessment I had a few days ago: through equal and rational dialogue a new cold war between China and the US can be avoided, and this would be a great thing for both countries and for the world.

“But the sky rains when it wants to, and girls marry when the time comes, and if certain people insist on foisting a ‘new cold war’ upon us, China has sufficient courage to meet this challenge, upholding China’s right to development in the midst of this struggle.”

Republished with permission from the China Media Project. 

https://www.hongkongfp.com/2018/12/07/read-quickly-gone-chinas-media-covered-ignored-arrest-huawei-executive/

The arrest of a top Huawei executive is ‘a shot into the heart’ of China’s tech ambitions, analysts say

December 7, 2018

The arrest of a top executive at one of the most successful Chinese global companies threatens to upend a delicate detente between the U.S. and China in their months-long trade war.

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Meng Wanzhou, deputy chairwoman and chief financial officer of telecommunications giant Huawei, was arrested Saturday during a transit stop at a Vancouver airport and could face possible extradition to the U.S. and an appearance in federal court in New York.

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By   and  

The Los Angeles Times

The arrest of a top Huawei executive is 'a shot into the heart' of China's tech ambitions, analysts say

 

Meng Wanzhou, chief financial officer of Huawei, attends an investment forum in Moscow in October 2014. Meng has been arrested in Canada and detained for potential U.S. sanctions violations. (Maxim Shipenkov / EPA/Shutterstock)
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A U.S. law enforcement official, who was not authorized to discuss the case by name, said the action against Meng involves violations of U.S. sanctions against Iran. Another U.S. official described the violations as serious. Neither official provided specifics.
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The arrest comes at a sensitive time as Washington and Beijing aim to strike a trade deal before March 1. White House officials told CNN that Meng could be used as leverage in trade talks. It’s unclear whether President Trump knew about the arrest in advance, though national security advisor John Bolton told National Public Radio that he did.
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Now any trade agreement has to overcome what will probably be viewed as a provocation in the eyes of China’s leadership, given Huawei’s importance.
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“Huawei embodies the existential angst of China hard-liners in the U.S. concerned about China’s ostensible grand plan for global domination of new high-tech industries,” said Eswar Prasad, a professor of trade policy at Cornell University. “Meanwhile, such actions by U.S. and other governments crystallize fears among Chinese leaders that the real intention is to hold back China’s economic progress and transformation.”
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China demanded the immediate release of Meng, who is among the cream of China’s corporate elite. She is the daughter of tech billionaire Ren Zhengfei, Huawei’s founder and CEO and a former engineer in the People’s Liberation Army.
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Chinese officials said she had not broken any laws, accused the United States and Canada of violating her rights and demanded an explanation as to why she was arrested.
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Chinese state media accused the U.S. of harassing Huawei to gain advantage in the worldwide competition for control of next-generation 5G cellular networks.
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The arrest “wasn’t a shot across the bow, but a shot into the heart of the ship” because Meng was basically considered an official of the Chinese government, a former U.S. official involved in national security matters said, speaking on condition of anonymity.
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Meng’s arrest, significant because of her elite connections and prominent corporate position, triggered shock in China. The arrest is doubly sensitive because it threatens the rise of one of China’s top cutting-edge brands, now the world’s second-largest smartphone company, surpassing Apple in sales this year.
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The state-owned Global Times reflected Chinese outrage over her arrest in an editorialaccusing Washington of “resorting to a despicable rogue approach” in a bid to hurt the company. The paper also tweeted Thursday that China should be ready for an escalation of the trade war, warning that Meng’s arrest was vivid evidence that Washington would not soften its stance against Beijing.
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“It is clear that Washington is maliciously finding fault with Huawei and trying to put the company in jeopardy with U.S. laws,” the editorial said.
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Washington is demanding sweeping changes to China’s industrial policy, in particular its state support for key high-tech industrial firms, forced transfers of technology by American companies doing business in China, and tolerance or tacit encouragement of intellectual property theft.
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Whereas the U.S. accuses China of getting hold of high-tech American intellectual property by bullying companies wanting to trade in China or by stealing trade secrets, China is convinced that Washington’s true objective is to contain its rise as a leading global power.
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“America is trying to use its powerful alliance system to turn domestic laws into ‘international laws,’ shamelessly imposing its own aims and standards onto other countries’ systems,” Mei continued. “This should remind all Chinese and other countries’ scientific or technological personnel and corporate figures to watch out for personal safety and freedom before going to the United States.”
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https://www.latimes.com/world/la-fg-china-huawei-20181206-story.html
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