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Thu Dec 6, 2018, 07:50 AM

Shocking Huawei Arrest Threatens to Upend Trump-Xi Trade Truce

On the same day Donald Trump and Xi Jinping struck a trade war truce in Argentina, some 7,000 miles away Canadian authorities made an arrest that now threatens to make the U.S.-China conflict much worse.

The U.S. is seeking the extradition of Wanzhou Meng, chief financial officer of Huawei Technologies Co., after convincing Canada to arrest her on Dec. 1. Canada confirmed she was in custody shortly after the Globe and Mail reported she had been arrested in connection with violating sanctions against Iran.

China promptly reacted with outrage after the news broke, demanding that both countries move to free Meng. Later, the foreign ministry said it was waiting for details on why she was arrested, and said trade talks should continue.

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. While the U.S. routinely asks allies to extradite drug lords, arms dealers and other criminals, arresting a major Chinese executive like this is rare -- if not unprecedented.

“The timing and manner of this is shocking,” Andrew Gilholm, director of North Asia analysis at Control Risks Group, said by phone. “It’s not often the phrase OMG appears in our internal email discussions. ”

Right now it’s unclear what role Trump played in Meng’s arrest, or if he will intervene at some point. The U.S. leader has spent the past few days seeking to convince the world -- and skeptical equity investors -- that China has agreed to major concessions, including reducing or removing tariffs on U.S. cars. Stocks fell across Asia on Thursday.

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 October, the U.S. said Belgium extradited a Chinese intelligence official accused of stealing trade secrets from U.S. companies -- an unprecedented development.

Either way, China is almost certain to view Meng’s arrest as a major escalation in the trade war that will foment fears of a wider Cold War between the world’s biggest economies. As part of trade talks, Trump has insisted that China stop providing government support to strategic sectors including artificial intelligence and robotics as part of its “Made in China 2025” policy.

https://www.bloomberg.com/news/articles/2018-12-06/-shocking-huawei-arrest-threatens-to-upend-trump-xi-trade-truce

Dow futures currently off 386 points.

U.S. Nabbing Huawei Is the Dog That Caught the Car

https://www.bloomberg.com/opinion/articles/2018-12-06/huawei-arrest-gives-u-s-leverage-over-china-on-technology

9 replies, 128 views

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Response to Troll2 (Original post)

Thu Dec 6, 2018, 07:56 AM

1. no problem...

...it's just MAGA Man smearing his MAGA around the world...

...China and wall-street had better get used to it...

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Response to myohmy (Reply #1)

Thu Dec 6, 2018, 07:32 PM

3. She violated sanctions against Iran. Are you cool with that?

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Response to Troll2 (Original post)

Thu Dec 6, 2018, 06:59 PM

2. "after convincing Canada to arrest her . . . . . " ?

Under what mechanism do we we arrest anyone for the USA?

OK - escaped convicts and the like, I get, but this?



CC

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Response to akaConcernedCanuk (Reply #2)

Fri Dec 7, 2018, 07:45 AM

4. I thought that to be extraditable, the alleged offense had to be a crime in Canada?

Has Canada passed the same sanctions against Iran as the US?

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Response to Troll2 (Reply #4)

Fri Dec 7, 2018, 07:54 AM

5. "I thought that to be extraditable, the alleged offense had to be a crime in Canada?"

That makes no sense.

Why would Canada extradite someone to the US for a crime committed in Canada?

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Response to Charlie Mike (Reply #5)

Fri Dec 7, 2018, 08:02 AM

6. To clarify, "the alleged offense would have been a crime if it had been committed in Canada".

Suppose I beat my wife in the US and flee to Slobovistan. Although Slobovistan has an extradition treaty with the US, Slobovistan would not extradite me to the US because wife beating is not a crime in Slobovistan.

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Response to Troll2 (Reply #4)

Sat Dec 8, 2018, 05:48 PM

8. I just stumbled on an article that sorta explains our government's position . . .

China summons Canada envoy over ‘unconscionable and vile’ detention of Huawei exec Meng Wanzhou

China’s Vice Foreign Minister Le Yucheng said Meng’s detention was a ‘severe violation’ of her rights
Ottawa urged to release Meng immediately or face ‘grave consequences’

PUBLISHED : Sunday, 09 December, 2018, 2:41am
UPDATED : Sunday, 09 December, 2018, 2:41am

https://www.scmp.com/news/world/united-states-canada/article/2177082/china-summons-canada-envoy-over-unconscionable-and

/snip/

Canada has a long-standing extradition treaty with the United States, requiring it to cooperate with US Department of Justice requests to hand over suspects.

The offence for which extradition is being sought must also be a crime in Canada, and a Canadian court must decide if there is sufficient evidence to support the extradition.

/snip/

The extradition process could take months, even years, if appeals are made in the case.

/snip/
_________________________________________________________________________________

I doubt China is gonna let this go over easy - there WILL be appeals of any decision that would indicate we will support the USA's demands.

We'll be embroiled with this for a while methinks . . . .

(sigh)

CC

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Response to akaConcernedCanuk (Reply #8)

Sat Dec 8, 2018, 07:56 PM

9. She is apparently being charged with bank fraud, which would also be a crime in Canada

Allegedly, she represented to HSBC that certain transactions did not breach US sanctions against Iran. She thus defrauded HSBC and caused them to execute payments that were incompatible with the sanctions.

Huawei CFO Being Prosecuted for Fraud, Canada Says

https://www.bloomberg.com/news/articles/2018-12-07/huawei-cfo-being-prosecuted-for-fraud-canada-lawyer-says

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Response to Troll2 (Original post)

Fri Dec 7, 2018, 08:27 AM

7. It is what it is

China's assault on the US is multi-faceted.

Trump is a big boy. I'm sure he can handle it.

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