China warns of ‘serious consequences’ if Canada doesn't release detained Huawei executive

April FrancisDec 09, 2018

Crown counsel told a court in Vancouver the U.S.is seeking Meng's extradition for offenses linked to violations of a company called Skycom.

If extradited to the US, Meng would face charges of conspiracy to defraud multiple financial institutions, a Canadian court heard on Friday.

Meng was arrested in Vancouver Dec. 1 at the behest of USA authorities for allegedly violating American sanctions on selling technology to Iran.

China warns there will be severe consequences if Canada does not immediately release Huawei Technologies' chief financial officer, calling the case "extremely nasty".

After almost six hours of arguments and counter-arguments, no decision was reached and the hearing was adjourned until Monday.

He said she had denied to United States bankers any direct connections between Huawei and SkyCom, when in fact "SkyCom is Huawei".

Meng, who also has used the English names Cathy and Sabrina, served on the board of Skycom between February 2008 and April 2009, according to Skycom records and several other past and present Skycom directors appear to have connections to Huawei. Martin, her lawyer, said she would never breach a court order on bail because that would embarrass her father and China. Congress issued a report concluding that "Huawei did not fully cooperate with the investigation and was unwilling to explain its relationship with the Chinese government or Chinese Communist Party, while credible evidence exists that it fails to comply with USA laws". Meng, who is the daughter of Huawei founder Ren Zhengfei allegedly allowed the company's subsidiary SkyCom to do business in Iran, thereby violating USA sanctions against the country.

At an extradition hearing in Vancouver Friday, Crown attorney John Gibb-Carsley laid out the case against Meng on behalf of the US government.

For Canada's telecom industry and the federal government in Ottawa, Huawei has always been known as an important equipment supplier - one that USA officials consider a significant threat to national security.

In a statement Saturday morning China time, Huawei said it has "every confidence that the Canadian and USA legal systems will reach the right conclusion" in Meng's case.

The world's top two economies have exchanged steep tariffs on more than US$300 billion in total two-way trade, locking them in a conflict that has begun to eat into profits.

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Her appearance at the British Columbia Supreme Court in Vancouver is a prelude to an extradition process that could take months.

Official details on the reasons for Meng's arrest have been slim, with the Star Vancouver reporting that United States authorities believe that Meng knew that a company called SkyCom, which did business with Iran while the country was under worldwide sanctions, was a subsidiary of Huawei until at least 2014.

"President Trump did not know-none of us knew as a matter of fact... period full stop", he said. At the time, Meng served as the management firm's company secretary.

"Obviously, Washington is resorting to a despicable rogue's approach as it can not stop Huawei's 5G advance in the market", it went on.

China has demanded her release, saying there has been no wrongdoing. All security costs would be borne by her. She conferred with her two lawyers through a translator.

Meng was arrested in Canada on December 1 at the request of the United States. Since learning of the investigation into her alleged activities, Meng has avoided the USA and other Huawei executives have stopped traveling to the US, he added.

It has been a week since Canadian authorities arrested Huawei CFO Meng Wanzhou in Vancouver on fraud charges.

When asked about the possible Chinese backlash over Meng's arrest, Prime Minister Justin Trudeau told reporters that Canada had a very good relationship with Beijing. The story caused concern among banks that did worldwide business with Huawei, he said.

Lawrence Surtees, vice-president for communications research at IDC Canada, says Britain and Canada are the second and third most important Five Eyes partners after the United States and ahead of Australia and New Zealand.

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