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The Latest: Official says Japan undecided on blocking Huawei

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WASHINGTON (AP) — The Latest on the arrest of an executive of Chinese telecoms equipment maker Huawei Technologies (all times local):

7:20 p.m.

A Chinese executive will spend the weekend in jail after a Canadian judge said he needs to weigh her proposed bail conditions.

Meng Wanzhou’s lawyer also says he will continue his arguments for her bail on Monday.

Meng is the chief financial officer of telecommunications giant Huawei and daughter of its founder.

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She is facing possible extradition to the U.S, where officials allege that Huawei used a Hong Kong shell company to sell equipment in Iran in violation of U.S. sanctions.

The U.S. also says that Meng and Huawei misled American banks about its business dealings in Iran.

Meng was detained at the request of the U.S. during a layover at the Vancouver airport last Saturday — the same day that Presidents Donald Trump and Xi Jinping of China agreed over dinner to a 90-day cease-fire in a trade dispute that threatens to disrupt global commerce.

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3:30 p.m.

The lawyer for the chief financial officer of Chinese telecom giant Huawei says the fact that a person has extraordinary resources cannot be a factor that would exclude them from bail.

Meng Wanzhou’s lawyer David Martin said at her bail hearing that her own dignity would not allow her to go against a court order. He also said Meng would not embarrass her father by breaching a court order.

The prosecutor earlier argued that Meng has vast resources and would be motivated to flee Canada and return home to China. Prosecutor John Gibb-Carsley says the charges Meng is facing in the U.S. have to do with Huawei using a sham subsidiary to access the Iran market in dealings that would contravene U.S. sanctions.

Meng is accused of fraud. Gibb-Carsley says she assured U.S. banks that Huawei and Skycom were separate companies but he says Skycom is Huawei

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2:30 p.m.

A prosecutor for the Canadian government says the chief financial officer of Chinese telecom giant Huawei has incentive to flee Canada because she faces charges in the U.S. of up to 30 years in prison.

The prosecutor said at the bail hearing for Meng Wanzhou that she has vast resources and would be motivated to flee Canada and return home to China.

He says the charges Meng is facing in the U.S. have to do with Huawei using an unofficial subsidiary to access the Iran market in dealings that would contravene U.S. sanctions.

Meng is accused of fraud. The prosecutor says she assured banks that Huawei and Skycom were separate companies but he says the U.S. contends that Skycom is Huawei.

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2:15 p.m.

A prosecutor for the Canadian government says the charges that the chief financial officer of Chinese telecom giant Huawei is facing in the U.S. have to do with Huawei using a unofficial subsidiary to access the Iran market in dealings that would contravene U.S. sanctions.

The prosecutor said at the bail hearing for Meng Wanzhou that is she is accused of fraud. He says she assured banks that Huawei and Skycom were separate companies but he says the U.S. contends that Skycom is Huawei.

The prosecutor is saying she is a flight risk and should not be granted bail. He says the arrest warrant was issued in New York on Aug. 22.

Meng’s arrest came as a jarring surprise after Presidents Donald Trump and Xi Jinping agreed to a trade truce last weekend in Buenos Aires, Argentina.

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1:40 p.m.

The chief financial officer of Chinese telecom giant Huawei is appearing in a Canadian court as she seeks bail while awaiting possible extradition to the United States.

Sporting a green sweater, Meng Wanzhou, smiled and spoke to her lawyer as she waited for the judge to arrive.

Meng’s arrest came as a jarring surprise after Presidents Donald Trump and Xi Jinping agreed to a trade truce last weekend in Buenos Aires, Argentina.

White House economic adviser Larry Kudlow said Friday on Fox Business Network’s “Varney & Co” that Huawei had violated U.S sanctions on Iran.

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12:40 p.m.

Huawei has denied that it poses a security threat, after an EU commissioner raised concerns.

The Chinese telecom giant said Friday it has never been asked by any government to build “back doors” to its systems or “interrupt any networks.”

“We would never tolerate such behavior by any of our staff,” it said.

The statement was in response to comments by EU tech commissioner Andrus Ansip, who said that after the arrest of Huawei’s chief financial officer, “we have to be worried” about the company.

Ansip cited concerns Beijing could require Chinese tech companies to cooperate with intelligence services or add “back doors,” when asked about Huawei’s role in European 5G and driverless car projects.

Huawei said, “We categorically reject any allegation that we might pose a security threat.”

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10:10 a.m.

Russia’s top diplomat has criticized the arrest of a Chinese telecommunications company executive as an example of heavy-handed policies of the U.S.

The chief financial officer of Huawei, the world’s biggest supplier of network gear for phone and internet companies, was arrested in Canada Saturday and faces extradition to the U.S. on charges of trying to evade U.S. sanctions on Iran.

Speaking during a meeting in Rome, Russian Foreign Minister Sergey Lavrov said Friday the executive’s arrest shows how the U.S. is pushing to implement its laws beyond its borders, which he called “a very arrogant position.”

Lavrov said “that is not even being supported by anyone, even the closest allies of the U.S.,” adding that “we need to put a stop to that.”

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8:05 a.m.

The European Union’s technology commissioner says the bloc should be worried about possible security risks from telecom giant Huawei and other Chinese companies.

EU Digital Market Commissioner Andrus Ansip said there’s reason for concern following the arrest of Huawei’s chief financial officer reportedly on suspicion of involvement in sanctions evasions.

“The next question is, do we have to be worried about Huawei or other Chinese companies? Yes I think we have to be worried,” Ansip said at a press briefing.

Ansip said there are fears about Beijing requiring the country’s tech companies to cooperate with its intelligence services or add “back doors” to their systems.

Huawei is the world’s biggest supplier of network gear for phone and internet companies but the arrest has intensified concerns that its dominance threatens the national security of Western allies.

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6:00 a.m.

China has expressed serious concern about media reports that Japan might exclude Chinese telecom equipment makers Huawei Technologies and ZTE Corp. from government purchases.

Foreign Ministry Spokesman Geng Shuang said Friday that both companies have been operating legally in Japan for a long time and that China hopes Japan “will provide a level playing field for Chinese companies …. and avoid doing anything that would undermine mutual trust and cooperation.”

The Japanese newspaper Yomiuri reported that Tokyo might take the step because of security concerns, as the United States and some other countries have done.

A Japanese official said though that no decision has been made.

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3:30 a.m.

A Japanese official has cast doubt over reports that Japan plans to exclude Chinese telecoms equipment makers Huawei Technologies and ZTE Corp. from government purchases due to security concerns.

The Japanese newspaper Yomiuri reported Friday that Tokyo might take the action following the lead of the U.S. and some other countries.

The report, citing unnamed sources, said government officials planned to meet to discuss such a move.

A senior official at the government office in charge of cybersecurity said Japan has not made such a decision. He said some new policy may be announced next week but it would likely not be what was being reported.

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12:48 a.m.

The dramatic arrest of a Chinese telecommunications executive has driven home why it will be so hard for the Trump administration to resolve its deepening conflict with China.

The Huawei Technologies executive, Chief Financial Officer Meng Wanzhou, faces extradition to the United States. A bail hearing was set for Friday.

In the short run, her arrest heightens skepticism about the trade truce that Presidents Donald Trump and Xi Jinping reached last weekend in Buenos Aires, Argentina.

Share markets were rattled by fears that the 90-day cease-fire won’t last.

Huawei has been a subject of U.S. national security concerns that extend well beyond tariffs or market access. Washington and Beijing are locked in a clash between the world’s two largest economies for economic and political dominance for decades to come.

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.

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