Share

China pressures US, Canada ahead of Huawei hearing

Share

VANCOUVER, British Columbia (AP) — A jailed Chinese technology executive will have to wait at least one more day to see if she will be released on bail in a case that has raised U.S.-China tensions and complicated efforts to resolve a trade dispute that has roiled financial markets and threatened global economic growth.

Meng Wanzhou, the chief financial officer of Chinese telecommunications giant Huawei and daughter of its founder, was detained at the request of the U.S. during a layover at the Vancouver airport Dec. 1 — the same day that Presidents Donald Trump and Xi Jinping of China agreed to a 90-day cease-fire in the trade dispute that threatens to disrupt global commerce.

The U.S. has accused Huawei of using a Hong Kong shell company to sell equipment to Iran in violation of U.S. sanctions. It also says Meng and Huawei misled banks about the company’s business dealings in Iran.

After a second daylong session, Justice William Ehrcke said the bail hearing would continue Tuesday.

In urging the court to reject Meng’s bail request, prosecutor John Gibb-Carsley noted the Huawei executive has vast resources and a strong incentive to flee as she is facing fraud charges in the United States that could put her in prison for 30 years.

Trending:
Here Are the Justices Who Handed Biden a Win for His Vaccine Mandate for Health Care Workers

Gibb-Carsley later told the judge that if he does decide to grant bail it should include house arrest.

David Martin, Meng’s lawyer, said Meng was willing to pay for a surveillance company to monitor her and wear an ankle monitor but she wanted to be able to travel around Vancouver and its suburbs. Scot Filer of Lions Gate Risk Management group said his company would make a citizen’s arrest if she breached bail conditions.

Martin said Meng’s husband would put up both of their Vancouver homes plus $1 million Canadian ($750,000) for a total value of $15 million Canadian ($11.2 million) as collateral.

The judge cast doubt on that proposal, saying Meng’s husband isn’t a resident of British Columbia — a requirement for him to act as a guarantor that his wife won’t flee — and his visitor visa expires in February.

The prosecutor said her husband has no meaningful connections to Vancouver and spends only two or three weeks a year in the city. Gibb-Carsley also expressed concern about the idea of using a security company paid by Meng.

He said later that $15 million Canadian ($11.2 million) would be an appropriate amount if the judge granted bail, but he said half should be in cash.

Huawei said in a statement that it had “every confidence that the Canadian and U.S. legal systems will reach a just conclusion.”

Meng’s arrest has fueled U.S.-China trade tensions at a time when the two countries are seeking to resolve a dispute over Beijing’s technology and industrial strategy. Both sides have sought to keep the issues separate, at least so far, but the arrest has roiled markets, with stock markets worldwide down again Monday.

The hearing has sparked widespread interest, and the courtroom was packed again Monday with media and spectators, including some who came to support Meng. One man in the gallery brought binoculars to have a closer look at Meng, while outside court a man and woman held a sign that read “Free Ms. Meng.”

Related:
GOP Congressman Who Voted to Impeach Trump Announces Retirement

Over the weekend, Chinese Vice Foreign Minister Le Yucheng summoned Canadian Ambassador John McCallum and U.S. Ambassador Terry Branstad.

Le warned both countries that Beijing would take steps based on their response. Asked Monday what those steps might be, Chinese Foreign Ministry spokesman Lu Kang said only, “It totally depends on the Canadian side itself.”

Stocks around the world fell Monday over investor concerns about the continuing U.S.-China trade dispute, as well as the cloud hanging over Brexit negotiations after Britain’s prime minister postponed a vote on her deal for Britain to quit the European Union. In the U.S., stocks were volatile, tumbling in the morning and then recovering in the afternoon.

The Huawei case complicates efforts to resolve the U.S.-China trade dispute. The United States has slapped tariffs on $250 billion in Chinese imports, charging that China steals American technology and forces U.S. companies to turn over trade secrets.

Tariffs on $200 billion of those imports were scheduled to rise from 10 percent to 25 percent on Jan. 1. But over dinner Dec. 1 with Xi in Buenos Aires, Argentina, Trump agreed to delay the increase for 90 days, buying time for more negotiations.

Bill Perry, a trade lawyer with Harris Bricken in Seattle, said China’s decelerating economy is putting pressure on Xi to make concessions before U.S. tariffs go up.

“They need a trade deal. They don’t want the tariffs to go up to 25” percent, said Perry, who produces the “US China Trade War” blog. “This is Damocles’ sword hanging over the Chinese government.”

Huawei, the biggest global supplier of network gear for phone and internet companies, has become the target of U.S. security concerns because of its ties to the Chinese government. The U.S. has pressured other countries to limit use of its technology, warning they could be opening themselves up to surveillance and theft of information.

Lu, the Foreign Ministry spokesman, accused countries he didn’t cite by name of hyping the “so-called” threat.

“I must tell you that not a single piece of evidence have they ever presented to back their allegation,” he said. “To create obstacles for companies’ normal operations based on speculation is quite absurd.”

Canadian officials have declined to comment on Chinese threats of retaliation, instead emphasizing the independence of Canada’s judiciary and the importance of Ottawa’s relationship with Beijing.

___

Associated Press writer Jim Morris reported in Vancouver, AP writer Rob Gillies reported from Toronto and AP writer Paul Wiseman contributed from Washington. AP writers Ken Moritsugu and Christopher Bodeen and researcher Shanshan Wang in Beijing contributed to this report.

The Western Journal has not reviewed this Associated Press story prior to publication. Therefore, it may contain editorial bias or may in some other way not meet our normal editorial standards. It is provided to our readers as a service from The Western Journal.

Truth and Accuracy

Submit a Correction →



We are committed to truth and accuracy in all of our journalism. Read our editorial standards.

Tags:
Share
The Associated Press is an independent, not-for-profit news cooperative headquartered in New York City. Their teams in over 100 countries tell the world’s stories, from breaking news to investigative reporting. They provide content and services to help engage audiences worldwide, working with companies of all types, from broadcasters to brands.
The Associated Press was the first private sector organization in the U.S. to operate on a national scale. Over the past 170 years, they have been first to inform the world of many of history's most important moments, from the assassination of Abraham Lincoln and the bombing of Pearl Harbor to the fall of the Shah of Iran and the death of Pope John Paul.

Today, they operate in 263 locations in more than 100 countries relaying breaking news, covering war and conflict and producing enterprise reports that tell the world's stories.
Location
New York City




Conversation

The Western Journal is pleased to bring back comments to our articles! Due to threatened de-monetization by Big Tech, we had temporarily removed comments, but we have now implemented a solution to bring back the conversation that Big Tech doesn't want you to have. If you have any problems using the new commenting platform, please contact customer support at commenting-help@insticator.com. Welcome back!