Huawei Founder Daughter Arrested in Canada

Meng Yongbo, the daughter of the founder of Huawei Technology was arrested in Vancouver, Canada. The details of the detention are unknown, but the United States, as noted, is conducting an inquiry into Huawei regarding a possible violation of the sanctions regime against Iran. A hearing on her bail is scheduled for Friday, a representative of the Canadian Department of Justice said.

Meng Yongbo is one of the Vice Chairman of Huawei Technology’s boards of directors. United States authorities have been conducting investigations as if the company was exporting products in violation of the embargo on Iran. Canadian judicial authorities announced on Monday that he was arrested on December 1 and said that court interrogation is planned on the 7th.

Huawei Technology is growing market share worldwide due to its high performance and good cost performance. Shipment volume is second in the world after Korean Samsung Electronics.

Meng Yongbo was arrested at the time he was about to change plane in Canada. Huawei Technology announced the statement that the company is having limited information on this subject and do not recognize Mr. Meng’s criminal acts. It also states that the company conducts business activities in accordance with all laws and regulations including embargoing measures.

Huawei Technology itself stated that their top manager didn’t do anything illegal. The US State Department refused to comment on the case of the top manager of Huawei Technology. The arrest took place against the background of aggravating relations between the United States and China, which were essentially involved in a trade war. The arrest will not strengthen the 90-day tariff truce agreed during the negotiations between Donald Trump and Xi Jinping at the G-8 meeting.

The arrest also coincided with attempts to limit the use of Huawei technology in Western countries. The United States, Australia, and New Zealand have agreed not to use the equipment under this brand in the infrastructure necessary for the transition to faster 5G mobile networks.

Huawei Technology said that the company operates in accordance with laws and regulations, including export controls and sanctions laws in force in the member countries of the United Nations, the European Union and the United States.

The Chinese embassy in Canada strongly protests that Mr. Meng’s arrests are not against the laws of Canada and the United States. Chinese Foreign Ministry is demanding the immediate release of Meng Wanzhou, alleging a violation of human rights.

Huawei is exposed to severe eyesight in the United States because of the concern of security risk from the close relationship with the Chinese government. Although it is one of the world’s leading communication equipment, business in the United States is severely restricted due to concern that competition with US companies and its mobile phone and communication equipment are being used for Chinese spying activity.

The US Wall Street Journal (WSJ) reported that the US authorities started investigating in April this year on suspicion of violating sanctions against Iran. The New York Times also said that Huawei Technology was being summoned by the U.S. Commerce Department on suspicion of violating Iran sanctions and sanctions against North Korea.

In July, the United States imposed protective duties on certain Chinese goods, and China responded with similar measures. However, at the G20 summit in Argentina on December 1-2, the parties, at first glance, managed to agree on a temporary cessation of the trade war and a three-month moratorium on the introduction of new duties. It is not yet known whether this moratorium will be lifted after this arrest.

Huawei Technology is one of the largest telecommunications companies. In the second quarter of 2018, It took second place in the supply of Smartphones on the world market, shifting Apple to third.

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