Huawei arrest and US-China trade truce, Larry Kudlow weighs in

Huawei's Executive Board Director Meng Wanzhou attends the VTB Capital Investment Forum

Chinese Tech Exec Faces 30 Years in Prison in U.S., Canadian Prosecutor Says

Canada was presenting the case against Meng on behalf of the U.S., which wants to extradite her.

Speaking at a news conference in Milan, Lavrov said the detention showed how Washington imposes its laws beyond its jurisdiction.

Professor Francis Lui Ting-ming, adjunct professor at the Hong Kong University of Science and Technology, believed the U.S. was aiming to deal a blow to Huawei with Meng's arrest, because the company's 5G technology, which he described as cheaper and better quality, posed a great threat to the American innovation sector.

Meng faces charges of fraud in the United States for allegedly misrepresenting Huawei's relationship with Hong Kong-based Skycom, according to evidence read in court on Friday.

As details of American allegations against a Chinese executive were revealed Friday in a Vancouver court, Foreign Affairs Minister Chrystia Freeland said Canada's ambassador in Beijing had briefed the Chinese foreign ministry on her arrest.

In a statement, Huawei said it had "every confidence that the Canadian and US legal systems will reach the right conclusion".

While the circumstances surrounding the Huawei executive's arrest remain unclear, Axios quoted James Lewis, director of technology policy at the CSIS think tank, as saying on 6 December that "Huawei is one of the Chinese government's pet companies", and that "they will retaliate and China will take hostages".

The United States has been looking since at least 2016 into whether Huawei violated USA sanctions against Iran, Reuters reported in April.

"You can rely upon her personal dignity", he said, adding that to breach a court order "would be to humiliate and embarrass her father, who she loves".

In Britain, which is also a member of the Five Eyes, BT Group announced on Wednesday that it is removing Huawei equipment from its core 4G networks and will not use its 5G technology, a move made two days after Alex Younger, chief of the Secret Intelligence Service, known as MI6, questioned whether Britain should use Chinese gear.

A senior diplomat from the USA embassy in Singapore gave opening remarks, but an embassy spokesperson said she left before any discussion. Since learning of the investigation into her alleged activities, Meng has avoided the US and other Huawei executives have stopped traveling to the USA, he added. "And he has assured China that due process is absolutely being followed in Canada and consular access for China to Ms. Meng will be provided, and that we are a rule-of-law country, and we will be following our laws as we have thus far in this matter, and as we will continue to do".

Martin said Meng was previously a permanent resident of Vancouver and her children went to school in the city, so her ties are stronger than claimed by the Crown.

He said that the daughter of Huawei founder Ren Zhengfei had substantial financial resources and was a flight risk.

The arrest of a top-ranking officer of one of China's leading tech companies on charges of technology theft and misuse has given a new twist to the trade and technology war between Washington and Beijing, even as the company ran into trouble in other countries - mainly Japan, which banned its government staff from buying Huawei devices, and the United Kingdom, which made the firm submit to special security norms to continue to operate.

BCE and Telus have declined to reveal whether USA national security officials have asked them to avoid Huawei equipment. The Trump administration says they benefit from improper subsidies and market barriers.

Japan is planning to halt government purchases of equipment from China's two largest telecommunications firms, Huawei and ZTE, amid security concerns, Yomiuri Shimbun reported Friday. The United States has pressured European countries and other allies to limit the use of its technology. The company is a privately held juggernaut with projected 2018 sales of more than US$102 billion that has already overtaken Apple in smartphone sales.

Wu Xinbo, a professor of global studies at Fudan University, said many Chinese will see Meng's arrest as part of an attempt by the United States to force China to continue manufacturing low-end consumer goods and prevent it from moving up to produce more advanced and valuable products. The White House also denied any involvement in Meng's arrest.

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