Huawei’s chief financial officer faces fraud charges in USA, says Canadian prosecutor

Huawei’s chief financial officer faces fraud charges in USA, says Canadian prosecutor

-China relations and worrying global financial markets.

A senior executive of Chinese tech giant Huawei is facing allegations of fraud by using a subsidiary to violate United States and European Union trade sanctions against Iran in a case that shook world stock markets this week. Since learning of the investigation into her alleged activities, Meng has avoided the US and other Huawei executives have stopped traveling to the USA, he added.

The discussions at the meeting underscore concerns rippling through United States businesses in the world's second largest economy, already facing a delicate balancing act amid a tense trade standoff between Washington and Beijing.

Continued concerns over U.S.

Last week, US President Donald Trump and China's Xi Jinping held talks on the sidelines of the G20 summit. Very hard to save face on this one.

Speaking at Thursday's press conference, Shuang responded to allegations that Meng's arrest had to do with Chinese intelligence services being suspected of involvement in the hacking of the United States hotel group Marriot, saying that he was "not aware" of the situation.

Gibb-Carsley told the hearing that Reuters reported in 2013 that Huawei was operating Skycom, triggering Huawei executives including Meng to allegedly make a series of misrepresentations. Ms Meng is said to have concealed and misrepresented links between Huawei and Skycom from banks, implicating them in the violation of USA and European sanctions as they cleared transactions for Huawei.

"Skycom was Huawei. This is the alleged fraud", said Gibb-Carsley, representing the Attorney General of Canada.

David Ryder / Reuters Journalists stake out during coverage of Huawei Chief Financial Officer Meng Wanzhou, who is set to appear for a bail hearing as she awaits possible extradition to the United States. The lawyer also proposed that Meng could be electronically monitored to ensure she does not take flight.

Huawei is the most prestigious tech company in China and was founded by Meng's father, Ren Zhengfei. "The arrest of Meng Wanzhou, I believe, should be seen in the context of the Sino-U.S. trade war", Ming said.

Meng's lawyer, David Martin, said: "The fact a person has worked hard and has extraordinary resources can not be a factor that would exclude them from bail". That information was passed on to federal prosecutors in the Eastern District of NY, the Journal report said.

The company responded to the incident saying: "no government has ever asked us to compromise the security or integrity of any of our networks or devices".

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Canada has a longstanding extradition treaty with the United States, requiring it to cooperate with US Department of Justice requests to hand over suspects. "This is the culmination of what is likely to be a fairly lengthy investigation". Exact details of the agreement are elusive. He noted that her detention was requested by the United States District Court for the Eastern District of NY, traditionally a Democratic state with strong opposition against Trump.

The delay was meant to buy time for the two countries to resolve a trade conflict that has been raging for months.

The world's two largest economies are locked in a dispute over charges by Washington, echoed by United States industry groups and analysts, that China has deployed predatory tactics in its drive to overtake America's dominance in technology and global economic leadership. "That was the case with other companies, and will continue to be the case".

Washington also regards Beijing's ambitious long-term development plan, "Made in China 2025", as a scheme to dominate such fields as robotics and electric vehicles by unfairly subsidizing Chinese companies and discriminating against foreign competitors.

His pessimistic forecast came a week after President Xi Jinping and his U.S. counterpart Donald Trump agreed to hold back from applying extra tariffs in January to pave the way for a trade deal. "By feigning to be annoyed by Trump, they are just pretending they are still fighting Trump, to save face in China".

Huawei has been a subject of U.S. national security concerns for years and Meng's case echoes well beyond tariffs or market access.

Ming Xia, a professor of political science and global affairs at City University of NY, said Meng's arrest was another example of how members of Trump's trade team know how to use very sharp, pinpoint moves to teach China a lesson. On Friday, the Dow Jones industrial average plunged almost 560 points.

US and Asian stock markets tumbled after news of Meng's arrest as it was seen to cause another flare-up in tensions between Washington and Beijing.

Lau said on a radio programme that when he learned about the 90-day truce he was relieved.

Still, Cornell University economist Eswar Prasad warned that "this incident highlights the huge gap in trust between the two sides, casting a pall over the tough negotiations that still lie ahead".

FILE - A salesclerk looks at his smartphone in a Huawei store at a shopping mall in Beijing, July 4, 2018.

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