Huawei CFO Arrested In Canada

Investors look at an electronic board showing stock information at a brokerage house in Shanghai China

Huawei's global chief financial officer arrested in Vancouver

Huawei is one of the world's largest telecoms companies, and is the world's second-largest smartphone manufacturer behind Samsung.

Meng's arrest has "potentially huge implications" for the trade war and signals the USA government is willing to get tough on Chinese companies that do business with Iran, according to Michael Every, head of Asia-Pacific research at investment bank Rabobank.

MSCI's benchmark for global stocks declined 0.61 percent, and US markets were on track to open lower by 1 percent or more.

Vigneault's speech comes shortly after three members Five Eyes intelligence-sharing alliance - New Zealand, Australia, U.S. - opted to ban carriers in their jurisdictions from purchasing telecommunications equipment from Huawei.

Both Huawei and ZTE Corp. have faced trouble with the US and other governments over dealings with Iran and fears the Chinese companies' equipment might be used for spying.

But after the pair met at the G20 on December 1, conflicting messages from Mr Trump over exactly what had been agreed sent markets sliding.

Huawei's rise to dominance has generated controversy.

Huawei has said it knows little of the charges and was "not aware of any wrongdoing by Ms Meng".

The exact circumstances of her arrest were unclear.

The Chinese embassy in Canada responded to news of Meng's arrest by lodging stern representations against the USA and Canadian governments and calling for her immediate release. Canuck officials were asked by the Americans to detain the CFO just a few days before she was ultimately nabbed in Vancouver. "The Chinese side firmly opposes and strongly protests over such kind of actions which seriously harmed the human rights of the victim", the Middle Kingdom's officials said in a statement via their Canadian embassy.

The probation violation cited by the judge involves the same conduct the U.S. Department of Commerce penalized in April by imposing a ban on U.S. companies selling goods to ZTE.

The Wall Street Journal reported this year USA authorities are investigating whether Huawei violated sanctions on Iran.

The US Justice Department probe is being run out of the US attorney's office in Brooklyn, the sources said.

Meng Wanzhou was detained at Vancouver airport on Saturday on an extradition request from the US. Yet Chinese government policies enacted in the past year seen as favoring local providers have only intensified suspicion. David Mulroney, a former Canadian ambassador to China, said USA and Canadian business executives could face reprisals in China. "Actually it hurts them to make life difficult" for USA companies. "The company believes the Canadian and United States legal systems will ultimately reach a just conclusion", Huawei said.

"I do think.the timing has a bearing on those talks in particular because Huawei is perhaps the most successful global company in China", said Mr Campling.

Jia Wenshan, a professor at Chapman University in California, said the arrest "runs a huge risk of derailing the U.S".

The arrest by Canadian authorities of Meng stems from an allegation that another company which she managed violated a USA ban against selling technology to Iran.

Huawei itself has been increasingly on the rocks with the United States for the past year.

In January 2013, Reuters reported that a Hong Kong-based firm that attempted to sell embargoed Hewlett-Packard computer equipment to Iran's largest mobile-phone operator had much closer ties to China's Huawei Technologies than was previously known. Huawei is by far China's most global technology company, with operations spanning Africa, Europe and Asia.

Several other past and present Skycom directors appear to have connections to Huawei.

Meng's arrest and detention have only amplified the already-tense state of U.S.

Sasse said China had been "working to creatively undermine our national security interests, and the United States and our allies can't sit on the sidelines".

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