Published: Thu, December 06, 2018
Finance | By Loren Pratt

Canada Arrests Huawei CFO at Request of U.S. Authorities

Canada Arrests Huawei CFO at Request of U.S. Authorities

Canadian officials have arrested Wanzhou Meng, the chief financial officer and deputy chairwoman of the board for the Chinese tech giant Huawei, CBC News has confirmed.

"She is sought for extradition by the United States", he explained.

The ministry added it could not provide further details due to a publication ban that was sought by Meng.

Her detention comes after USA authorities opened an investigation into suspected violations of Iran sanctions by Huawei, one of the world's largest telecommunications equipment and services providers.

Meng, daughter of the founder of the massive company, is being held under a provisional arrest warrant issued under the Extradition Act.

The federal Crown prosecutor handling the case declined to comment outside court on the reasons for Meng's arrest, referring questions to the federal Justice Department.

A Huawei spokesman said Wednesday that Ms. Meng was arrested while transferring flights in Canada.

USA authorities are investigating whether Chinese tech giant Huawei violated sanctions on Iran.


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.

The US imposed harsher sanctions on Iran earlier this year, as the Trump administration looked to restrict global business with the Iranian government.

Huawei is one of the world's largest telecommunications equipment and services providers.

In 2012, the House of Representatives released a report warning Huawei poses a national security threat to the US, and American companies and its government should avoid doing business with the company.

New Zealand and Australia have stopped telecom operators from using Huawei's equipment in new 5G networks because they are concerned about possible Chinese government involvement in their communications infrastructure.

The decision was because of the technology, not because it was a Chinese company, said Andrew Little, Minister Responsible for the GCSB.

The report said existing Huawei equipment at the firm's current 3G and 4G networks would also be removed.

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