Business & Investment

Huawei CFO leaves Canada after US trade for fraud, detains Canadians and returns

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Huawei Chief Financial Officer Meng Wanzhou returned to China on Friday after reaching an agreement with a U.S. prosecutor to end a bank fraud case against her, creating tensions between China and the U.S. Softened.

Within hours of the deal’s news, the two Canadians arrested shortly after Meng’s detention in December 2018 were released from a Chinese prison and on their way back to Canada. Beijing denied that their arrest was relevant.

The long-standing extradition drama is a central cause of discord in the increasingly volatile relationship between Beijing and Washington, and Chinese authorities need to withdraw the case to end the diplomatic stalemate. It signals that there is.

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The agreement also surrendered U.S. President Joe Biden to one of its top companies at the heart of global technology competition between China and the two countries as U.S. President Joe Biden was criticized by China Hawk in Washington. Claims to be.

Meng at Vancouver International Airport at https://www.reuters.com/article/us-usa-china-huawei/top-huawei-executive-arrested-on-us-request-clouding-china-trade-truce-idUSKBN1O42S1 Arrested Under a US warrant, he was charged with banking and transfer fraud allegedly misleading HSBC in 2013 for a major telecommunications equipment business transaction in Iran.

Reuters is Friday’s exclusive https://www.reuters.com/technology/huawei-cfo-meng-appear-brooklyn-federal-court-2021-09-24, Meng of the United States.

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“Men is responsible for her key role in implementing plans to scam global financial institutions,” said Nicole Beckman, acting U.S. federal prosecutor in Brooklyn, in signing the agreement. Said.

The agreement is only relevant to Meng, saying the US Department of Justice is preparing for a trial against Huawei and is looking forward to proving the case in court.

China’s Foreign Ministry did not immediately respond to requests for comment on Meng and the release of Canadians.

A Huawei spokeswoman declined to comment.

For those familiar with this issue, Huawei’s founder, Ren Zhengfei’s daughter, Meng, https://www.reuters.com/business/huawei-heir-apparent-prepares-life-after-three-years- Said canada-court-battle-. 2021-09-24 – Departed Canada by plane to Shenzhen.

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Two Canadians, businessman Michael Spavor and former diplomat Michael Kovrig, have been detained in China for over 1,000 days. In August, a Chinese court sentenced him to 11 years in prison for espionage at https://www.reuters.com/article/china-canada-spavor-idCNL1N2PI07Y.

The International Crisis Group, in which Kobrig is active, said his release was “the most legitimate decision” and “delighted” and thanked the roles of Canada and the United States. “The day we have been waiting for 1,020 days has finally arrived,” the advocacy group said in a statement.

Prime Minister Justin Trudeau told reporters late Friday that the two men had left Chinese airspace just minutes ago. He was not asked if the two countries had a bilateral agreement.

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“I would like to thank allies and partners around the world in the international community for maintaining solidarity between Canada and the two Canadians,” he said.

At a hearing in the Federal Court of Justice in Brooklyn on Friday when Meng attended virtually from Canada, US Federal Attorney General David Kessler if she complies with all of her obligations under an agreement ending in December 2022. He added that Meng was released on a bond of personal perception and the United States would withdraw its request to Canada for her expulsion, saying the government would move to dismiss the charges against her. ..

Meng pleaded not guilty to the accusation at the hearing. Meng sighed when Judge Anne Donnelly of the US District Court later accepted the indictment postponement agreement.

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A Canadian judge later signed Meng’s discharge order, lifted the bail conditions and allowed her to be free after nearly three years of house arrest.

She hugged her lawyer, thanked her, and was emotional after the judge’s order.

Talking to supporters and reporters about the subsequent court proceedings, Meng thanked the judge for her “fairness” and talked about how the case “upsided” her life.

Meng was trapped in an expensive Vancouver home at night and was monitored 24 hours a day, 7 days a week by private security guards paid as part of his bail contract. Called the “Princess of Huawei” by Chinese national media, she had to wear an electronic ankle bracelet to monitor her movements. This became the feed when the tabloids hung on the designer’s shoes.

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“HUAWEI CONFIDENTIAL”

Article published by Reuters in 2012 https://www.reuters.com/article/us-iran-huawei-hp/exclusive-huawei-partner-offered-embargoed-hp-gear-to-iran-idUSBRE8BT0BF20121230and 2013 https: / /www.reuters.com/article/uk-huawei-skycom/exclusive-huawei-cfo-linked-to-firm-that-offered-hp-gear-to-iran-idUKBRE90U0CA20130131 Huawei, Hong Kong Registered Company Skycom and Meng I thought it would stand out in a US criminal case against her. Reuters reported that Skycom offered to sell at least € 1.3 million worth of embargoed Hulett Packard computer equipment to Iran’s largest mobile operator in 2010.

Reuters also reported on a number of financial and personal relationships between Huawei and Skycom, including Meng’s participation in Skycom’s board of directors between February 2008 and April 2009.

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Huawei was listed on the US Trade Blacklist in 2019, limiting sales to companies for activities that are contrary to the interests of US national security and foreign policy. Regulations hinder companies that suffered the biggest decline in revenue in the first half of 2021 after driving to sell chunks of the mobile phone business, where U.S. supply regulations once dominated, before new growth areas matured. I did.

Criminal cases against Meng and Huawei are blacklisted. Huawei has been charged with acting as a criminal enterprise, stealing trade secrets, and fraudulent financial institutions. It claimed innocence.

Canadian government officials said Ottawa would not comment until the US proceedings were completed.

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China vs America

Huawei becomes a dirty word in Washington, and Chinese hawks in parliament respond quickly to news that could be interpreted as weak in the United States despite Huawei’s struggle under trade restrictions. increase.

President Donald Trump at the time politicized the case when he told Reuters shortly after Meng’s arrest that he would intervene if it would help national security or secure a trade deal. Meng’s lawyer said she was a pawn in a political battle between two superpowers.

Republican Chinese hardliners in parliament called Friday’s deal a “yield.”

“Instead of sticking to China’s hostages and blackmail, President Biden folded,” Republican senator Tom Cotton said in a statement.

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A senior US official said Meng’s case was being dealt with only by the Justice Department and had nothing to do with the US approach to a tense relationship with China.

When US Deputy Secretary of State Wendy Sherman visited China in July, China’s Deputy Foreign Minister Xie Feng insisted that the United States withdraw its proceedings against Meng.

U.S. officials admitted that Beijing linked Meng’s case to the case of two detained Canadians, but claimed that Washington was not drawn to seeing them as a trump card for negotiations.

(Reports by Karen Freifeld, Kenneth Li, Jonathan Stempel, David Shepardson, Michael Martina, Sarah Berman, Yew Lun Tian, ​​Written by Sonya Hepinstall, Edited by Daniel Wallis and Clarence Fernandez)

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    Huawei CFO leaves Canada after US trade for fraud, detains Canadians and returns

    https://financialpost.com/pmn/business-pmn/huawei-cfo-leaves-canada-after-u-s-deal-on-fraud-charges-detained-canadians-head-home Huawei CFO leaves Canada after US trade for fraud, detains Canadians and returns

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