Huawei CFO arrested in Canada, extradition to U.S. imminent

Asian markets tumble, China tech hit after Huawei arrest

The arrest of Meng threatens to derail a fragile truce in a trade war between the U.S. and China. -China relations. Though Trump and Chinese President Xi Jinping announced a temporary truce in a tariffs war - with Trump agreeing to suspend USA tariff hikes for a period - a more permanent resolution is nowhere in sight.

Financial markets turned negative on news of the arrest on fears it could scupper the truce.

James Lewis, the director of technology policy at the Center for Strategic and International Studies, told Axios the USA should be prepared for a backlash and warned American tech executives to steer clear of China for now.

"This is usually the kind of move China does", says McGregor.

The chief financial officer of Chinese tech giant, Huawei has been arrested in Canada after suspicions the company breached trade sanctions against Iran. Huawei says the USA requested Meng's arrest and it is unaware of any wrongdoing. Huawei's smaller rival ZTE Corp pleaded guilty previous year to conspiring to evade embargoes by selling USA equipment to Iran.

Huawei is not the first Chinese telecommunications equipment company to face the ire of U.S. authorities. A U.S. National Security Agency cybersecurity adviser, Rob Joyce, last month accused Beijing of violating a 2015 agreement with the U.S.to halt electronic theft of intellectual property.

The arrest has complicated U.S. Washington has been pushing other countries not to buy the equipment from Huawei, arguing that the company may be working stealthily for Beijing's spymasters. And Meng's arrest sent stocks still further into a spiral Thursday as Asian markets reacted to the news.

China's foreign ministry is demanding that Canada release Meng, the chief financial officer of Huawei Technologies, and the daughter of its founder.

National security advisor and mustache aficionado John Bolton said in an interview with NPR that not only did they know Meng was going to be cuffed by Canadian authorities, but he was actually dining with Chinese President Xi Jinping when the arrest occurred.

Huawei is already under intense scrutiny from US and other western governments about its ties to the Chinese government, driven by concerns it could be used by the state for spying. -Chinese tensions that threaten global economic growth. According to analysts, China has deployed predatory tactics, from forcing American and other foreign companies to hand over trade secrets in exchange for access to the Chinese market to engaging in cyber-theft.

The ban almost destroyed the Chinese technology company, forcing it to cease major operations in May.

Trump calls for his ex-lawyer Michael Cohen to be jailed
Trump had cheered on former campaign adviser Roger Stone for resisting to work with the special counsel's team. Earlier, he fired at his former personal attorney Michael Cohen for taking a plea deal in the case.

In addition to Trump's tariffs, the administration is tightening regulations on high-tech exports to China. But ZTE (ZTCOF), a Chinese tech firm that was temporarily crippled by a USA export ban earlier this year, slumped almost 9%.

In August, U.S. president Donald Trump signed an act to ban the use of Huawei components or services that are "essential" or "critical" to the systems they are used. Trump restored access after ZTE agreed to pay a $1 billion fine, replace its executive team and embed a USA -chosen compliance team in the company.

Huawei, which overtook Apple Inc as the world's No. 2 smartphone maker this year, said it was unaware of any wrongdoing by Meng and was provided "very little information" about the charges.

A user of China's Twitter-like Weibo platform said Chinese should boycott products made by US tech giant Apple Inc and instead buy Huawei products to show support for one of China's national champions.

Canada's Prime Minister Justin Trudeau also said he had prior knowledge of the country's authorities' plans to arrest Meng Wanzhou but hadn't taken part in the decision-making process. New Zealand and Australia already have.

Why is Huawei a concern to the West?

Huawei, the biggest global supplier of network gear used by phone and internet companies, has been the target of USA security organizations. Top carriers Verizon Communications and AT&T pulled out of deals to distribute Huawei smartphones earlier this year.

In 2012, the Australian government banned Huawei from bidding for NBN, Australia's broadband access network, for national security reasons.

The White House says Trump and his close aides were not aware the USA planned to place an extradition request for Meng ahead of his dinner with Xi on Saturday. "They may see that Canada has to do this, and the Canadian investment relationship is important".

Huawei said in a statement Wednesday it has not been provided many details about Meng's arrest.

"The threat from these companies lies in their access to critical internet backbone infrastructure", she said. Huawei has repeatedly insisted Beijing has no influence over it. "Having a better sense of how American bureaucracy works, I'd be more skeptical".

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