Economy

World markets down after arrest of Huawei executive

World markets down after arrest of Huawei executive

But now, the 46-year-old chief financial officer and deputy chairwoman of the flagship firm faces extradition to the United States and a court appearance in Vancouver on Friday after being arrested in Canada over potential violations of U.S. sanctions on Iran.

'China has already made solemn representations to the United States and Canada, demanding they immediately correct their wrong behavior and restore Ms Meng Wanzhou's freedom'.

According to a statement from the Department of Justice, Meng was arrested in Vancouver on Saturday and is being sought for extradition by the United States.

McLeod says further details can not be provided on the case because a publication ban is in effect at Meng's request. The company said it wasn't aware of any wrongdoing by the CFO and that authorities in both countries will "ultimately reach a just conclusion". The Justice Department also believes Huawei is violating USA sanctions against Iran because of the American components inside its products.

It's hard to overstate the significance of her arrest in Beijing: Meng is the daughter of the founder of Huawei, a national champion at the forefront of Xi's efforts for China to be self-sufficient in strategic technologies.

Suspicions over Huawei's links to the Chinese government have made the company a target for suspicion and the United States has led the charge to ban its products and services.

It has provided products and services in more than 170 countries and has more than 180,000 employees over the world.

Huawei, which sells telecommunications and computer electronics equipment, is the world's second largest maker of smartphones, behind South Korean giant Samsung. The report did not say what Huawei might be suspected of. "The Chinese government should seriously mull over the US tendency to abuse legal procedures to suppress China's high-tech enterprises".

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The Wall Street Journal reported earlier this year that US authorities were investigating whether Huawei violated sanctions on Iran.

He has since been proved right with revenue projected to hit 655.9 billion yuan (US$102.2 billion) this year, a jump of 9.3% compared to 2017. "But U.S. intelligence officials have been questioning Canada's ability as to whether it can actually test whether Huawei is being secure, or whether it's letting anything leak to the Chinese government".

Huawei released a statement saying its CFO was arrested while changing planes in Vancouver and is facing charges in "the Eastern District of NY". Huawei has denied the links.

"What makes Huawei important is that it is a leader in developing technologies that will make China less dependent on USA or European suppliers", he said.

Top British and New Zealand telecom providers have banned Huawei from their 5G networks, as did the Australian government.

Analysts said it's more likely the case proceeded separately from the trade talks as part of Trump's efforts to step up prosecutions against Chinese companies that conduct economic espionage and violate sanctions.

In January 2013, Reuters reported that Hong Kong-based 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.