Meng Wanzhou, the chief financial officer (CFO) of Huawei was arrested in Canada on behalf of the United States on Saturday and was facing extradition to the US for violating US sanction on Iran.
Due to Meng’s arrest, the incident has given a bizarre twist to the trade ties between the two countries – United States and China. A twist has emerged into the technology and trade war between Beijing and Washington.
Japan has banned its government members from using or buying Huawei products. The United Kingdom has made a firm to be submitted to the special security norms by Huawei to continue to operate it.
The incident has further intensified the trade war between the countries and also reserved the gains achieved through the recent negotiation talks between the US President Donald Trump and Chinese President Xi Jinping. Even Trump had on Friday, said the negotiation process with China was “going very well”.
The incident has also affected the American companies which are operating in China and facing backlashes. During an event of the US Department of State’s Overseas Security Advisory Council (OSAC) in Singapore on Thursday, the concerns raised were about a Chinese retaliation and the incident was high on the agenda. The meeting was attended by Walt Disney, Alphabet’s Google, Facebook and also PayPal.
On Friday, a prosecutors for the Canadian government urged the court to not to grant bail to Meng as its charges involves the US allegations that Huawei has used a fake shell company in order to access with Iran market in dealing and could be a “flight risk”, which involves violation of sanctions granted by Washington and European Union.
After an hour-long hearing on Friday, the court adjourned it until Monday and made Meng to be in custody for the weekend till next hearing on Monday.
The charges made against Mend in the country US are “on serious charges of fraud involving millions of dollars. If convicted, she would likely face a sentence of substantial jail time”.