China Summons US Ambassador Over Huawei CFO Arrest

Anna Jefferson
December 11, 2018

In a statement on Sunday, China's vice minister of foreign affairs, Le Yucheng, said the U.S. ambassador to China, Terry Branstad, is being summoned over Beijing's "strong protest against the US's unreasonable direction to Canada of detaining the Huawei executive".

Over the weekend, China summoned both the Canadian and US ambassador to protest Meng's detention.

Earlier this week, Huawei said Meng was detained by Canadian authorities on behalf of the United States when she was transferring flights in Canada.

Meng was arrested last week in Canada and had her bail hearing at the end of the week. He said China would "respond further depending on USA actions", similar to the warning he gave to the Canadian ambassador on Saturday.

China has warned Canada that it would face grave consequences if it does not release Meng immediately.

China has strongly criticised her detention and demanded her immediate release.

David Mulroney, a former Canadian ambassador to China, said USA and Canadian business executives could face reprisals in China.

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"We have to understand Chinese companies are not like American companies. OK". And that would be illegal due to current USA sanctions against that country. The arrest has roiled global markets as investors anxious it could torpedo attempts to thaw trade tensions between Washington and Beijing. This year, ZTE faced a ban on purchasing USA -made parts after failing to meet the terms of its 2017 settlement over those sanctions violations. "It is totally separate from anything that I work on or anything that the trade policy people in the administration work on".

"China has finally issued some very positive statements", Kudlow said.

The hearing in Vancouver is the start of a long legal process in Canada that could end with Meng being sent to the USA to stand trial.

It was the same day that President Trump and Chinese President Xi Jinping agreed to a 90-day cease-fire in the months-long trade war, which has seen both nations impose duties on billions of dollars of one another's goods.

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

Specifically, the New York Times wrote on Friday, prosecutors in Canada allege that from 2009-2014, Meng used a Hong Kong front company, Skycom Tech, to do business in Iran while Huawei cleared financial transactions through USA banks, causing the latter to be "victim institutions" of fraud.

The executive is also the daughter of the founder of Huawei.

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In a tweet, Roland Paris says, "Perhaps because the Chinese state controls its judicial system, Beijing sometimes has difficulty understanding or believing that courts can be independent in a rule-of-law country".

In a hearing that was adjourned on Friday, Canadian government lawyer John Gibb-Carsley asked for bail to be denied, saying Meng has been accused of "conspiracy to defraud multiple financial institutions".

"Judges will decide", Paris tweeted in response to the comments from Beijing.

Canadian prosecutors have urged a court in Vancouver to keep her in custody but, according to her sworn affidavit, she suffers from severe hypertension and is anxious about her health.

Canadian prosecutor John Gibb-Carsley said in a court hearing Friday that a warrant had been issued for Meng's arrest in NY on August 22.

In a sworn affidavit, Meng said she was innocent of the allegations and would contest them at trial in the United States if she was sent there. Meng is accused of misrepresenting Huawei's connection with Skycom to several banks involved in the case, leading to one bank clearing more than $100 million dollars worth of transactions.

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