Japan to ban government use of Huawei, ZTE products

09 December, 2018, 01:03 | Author: Essie Rivera
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If extradited to the US, Meng would face charges of conspiracy to defraud multiple financial institutions, a Canadian court heard on Friday.

Two state-run media outlets in China have come out with blistering attacks on the U.S. related to the arrest in recent days of Huawei's CFO Meng Wanzhou, who faces extradition here, saying the arrest is just a backdoor way for the USA to try to hobble the company.

Chinese Foreign ministry spokesman Geng Shuang said on Friday that neither Canada nor the United States had provided China any evidence that Meng had broken any law in those two countries, and reiterated Beijing's demand that she be released.

A day-long hearing was adjourned until Monday, when the judge is expected to render a decision on bail.

Banks in the USA cleared money for Huawei, but unbeknownst to these financial firms, they were conducting business with Skycom in contravention of the sanctions, the lawyer said. A 2013 Reuters report said that SkyCom attempted to sell U.S. equipment to Iran despite U.S. and European Union bans.

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.

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

The case will likely intensify pressure on the Trudeau government, which is being urged to refuse to allow Huawei products in Canada's next-generation 5G telecommunications networks.

Meng, 46, was taken into custody on Saturday, Dec. 1, 2018, on behalf of the USA, while she was transferring flights in Vancouver, the tech company said.

Ms Meng, Huawei's chief financial officer and daughter of the firm's founder, is accused of breaking USA sanctions on Iran.

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

CNN, quoting an unnamed official, said the United States saw the arrest as providing leverage in US-China trade talks - although White House trade advisor Peter Navarro has denied any link to the dialogue.

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 USA -manufactured technology to Iran, in violation of US trade sanctions.

"The Chinese government should seriously mull over the U.S. tendency to abuse legal procedures to suppress China's high-tech enterprises", said the nationalist tabloid Global Times in an editorial.

Huawei operated Skycom as an "unofficial subsidiary", he said, adding that Skycom employees had Huawei email addresses and badges and former employees have said there was no distinction between the two companies.

"President Trump did not know-none of us knew as a matter of fact... period full stop", he said.

U.S. investigators believe the misrepresentations induced the banks to provide services to Huawei despite the fact they were operating in sanctioned countries, Canadian court documents released yesterday showed.

Huawei is the most prestigious tech company in China and was founded by Meng's father, Ren Zhengfei.

The extradition process could take months, even years, if appeals are made in the case.

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