Huawei's Meng faces charges over alleged conspiracy to defraud banks

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Chinese state media have accused the U.S. of trying to "stifle" Huawei and curb its global expansion.

A prosecutor disclosed that Meng was wanted by the United States for allegedly deceiving financial institutions about the relationship between Huawei and another tech company, SkyCom, based in Hong Kong, that is alleged to have sold US -manufactured technology to Iran, in violation of USA trade sanctions.

The governments of the UK, Australia and New Zealand have moved to prevent Huawei technology being used in their future 5G mobile phone networks, following a U.S. drive to stop its allies from purchasing from the company.

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. This put the banks at risk of breaching sanctions.

USA authorities, however, claim Huawei continued to control the company, with Gibb-Carsley noting that SkyCom employees continued to carry Huawei identification and use its email.

None of the allegations have been proven in court.

Her arrest has drawn criticism from Russian Federation and China as an example of the United States' heavy-handed policies.

In January 2013, Reuters reported that Skycom Tech Co Ltd, which attempted to sell embargoed Hewlett-Packard computer equipment to Iran's largest mobile-phone operator, had much closer ties to Huawei than previously known.

Image source Axios
Image source Axios

In a statement earlier this week, Huawei said the company complies with all laws and regulations in the countries where it operates, including applicable export control, sanction laws and regulations of the United Nations, the United States and the European Union.

Huawei said on Wednesday that "the company has been provided very little information regarding the charges and is not aware of any wrongdoing by Ms Meng".

Canadian officials have said Ottawa was continuing to review Huawei´s technology for use in upcoming fifth-generation networks. With Washington's previous allegations that Huawei has direct links to the Chinese government, it's not a big stretch to assume Meng's case is another trade war offensive, perhaps a hostage-taking. Crown prosecutors argue Meng violated section 380 of Canada's criminal code, which pertains to fraud.

It has charged that Beijing has stolen trade secrets, violated patents, hacked industrial targets and forced USA companies investing in China to hand over their technology to Chinese partners. If freed, her lead lawyer said, she plans to live in one of her two Vancouver properties with her husband and two school-aged children, who lived in the city from 2009 to 2012 while her husband pursued a master's degree at a local university. He said Meng would agree to wear an ankle monitor.

On TV and social media, commentators likened her arrest to the hypothetical detention in China of a Mark Zuckerberg sibling or a cousin of Steve Jobs.

China said Meng has broken no USA or Canadian law. "Despite incomplete information about the incident, the U.S. move obviously goes against the consensus reached between the heads of state of China and the USA in Argentina".

Meng, who also goes by the first name Sabrina, is one of four deputy chairs listed on the Huawei website and one of three women to sit on the Huawei board.

"Yet Washington, in persuading and pressuring its allies to shun cooperation with Huawei, has helped erode that political trust", the English-language paper said.

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