Huawei’s seems to be running into trouble in the US region, this time Huawei CFO Wanzhou Meng has been arrested by Canadian law enforcement authorities for violating sanctions against Iran. Meng who is the daughter of company founder Ren Zhengfei was arrested on December 1 and will have a bail hearing on December 7th. There is a publication ban in place on the request of Ms. Meng.
According to the company it has limited knowledge of the charges against Meng and is not aware of her wrongdoings.
The Chinese embassy in Canada have opposed the arrest and have demanded an immediate release of Ms. Meng.
Reuters reported Huawei has been under the radar of US authorities since at least 2016 for allegedly shipping U.S.-origin products to Iran and other countries in violation of U.S. export and sanctions laws.
Meng has also been in trouble back in the year 2013 when she was serving on the board of Skycom Tech. The company was supposed to sell HP equipment to Iran in late 2010 with the help of Huawei. The deal included a 13-page proposal marked as Huawei confidential. Though the deal never took off, it would surely have landed Huawei and Skycom in trouble.
It is not yet clear if the recent arrest is related to the incident in 2010 or an entirely separate allegation.
The recent arrest could lead to a block between China and US talks. With the recently concluded talks between President Donald Trump and President Xi Jinping in Argentina to take initiative to resolve issues over a brewing trade war.
Recently American authorities have not only banned Huawei devices in government but also have pressurized other countries to drop the use of Huawei equipment. With the recent arrest of Ms. Meng, the tension will be rising between the two countries for sure.
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