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World markets down after arrest of Huawei executive

07 December 2018

Chinese officials on Wednesday demanded the return of Meng Wanzhou, the chief financial officer of Huawei Technologies and a member of its board, who was arrested by Canadian law enforcement in Vancouver on Saturday at the request of USA authorities.

Foreign ministry spokesman Geng Shuang told reporters today that the Chinese government also wants Canadian officials to reveal the reasoning behind Meng Wanzhou's arrest in transit on Saturday.

He also said Meng's legal rights must be ensured, adding that neither Canadian nor American officials had so far responded to China's concerns. The ban was sought by Meng, who has a bail hearing Friday, he said.

Canadian Justice Department spokesman Ian McLeod says the seeking Meng's extradition, but couldn't provide further details about the case because a publication ban is in effect at Meng's request.

The Wall Street Journal reported in April that the US Department of Justice had opened an investigation into suspected violations of Iran sanctions by Huawei.

Chinese authorities have demanded the immediate release of Ms Meng and say she has done nothing wrong.

Canadian officials have jeopardized tighter trade ties with the world's second largest economy in arresting the heiress apparent of telecom giant Huawei Technologies, according to Chinese-Canadian relations experts monitoring the situation.

Meng's arrest comes as Ottawa and Beijing have been engaged in exploratory talks on a free trade agreement for the past two years, which would be the first deal of its kind between China and a western country.

That includes theft of USA intellectual property by Chinese actors and forced technology transfers from U.S. companies to Chinese partners in joint ventures, he said. He said targeting Huawei, one of its most successful companies, "will trigger anti-U.S. sentiment".

This year has also seen the eruption of trade tensions between the USA and China.

Some element of calm was restored in Asia on Wednesday after supportive comments from Beijing - its first reaction to hopes a new trade agreement between the USA and China could be reached within a 90-day deadline. "Once the arrest has been made, the extradition request filed, it's not an easy thing even for the (U.S.) president to cancel a judicial action".

Meng was changing flights in Canada when she was detained "on behalf of the United States of America" to face unspecified charges in NY, according to a Huawei statement.

He also responded to the idea that Meng could be found guilty in Canada for being in breach of sanctions the United States has imposed on Iran.

Analysts have warned that the arrest of Huawei's Chief Financial Officer Meng Wanzhou may have major repercussions for American tech companies and Washington's ongoing trade war with China, with some experts suggesting that China could retaliate by arresting US citizens. "Now we know that Huawei, like ZTE, has violated USA sanctions law".

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.

It shed 0.6 per cent against the USA dollar to $0.7229. On Thursday, U.S. stock markets tumbled on fears that the 90-day cease-fire won't last, before regaining most of their losses by the close of trading.

When Merritt said he was unable to attend the meeting, Chinese authorities threatened to arrest or detain the employees that InterDigital planned to send in Merritt's place, Reuters reported. -Chinese cease-fire in a tariff war over Beijing's technology policy. "We oppose the imposition of unilateral sanctions by certain country outside the framework of the Security Council". Although markets were closed on Wednesday in honor of a memorial service for former President George H.W. Bush, the dip also came after a 799-point fall on Tuesday. But the company said early this year it had become the 25th largest research and development funder in Canada, thanks to partnerships with local universities. It appears that the arrest is likely in connection to an ongoing United States investigation into Huawei allegedly violating global sanctions against Iran and North Korea.

World markets down after arrest of Huawei executive