Huawei executive arrested by Canadian officials at United States request

The arrest of Huawei Technologies Co.'s Chief Financial Officer Wanzhou Meng in Canada is linked to potential violations of United States sanctions on Iran by the Chinese company.

Meng Wanzhou, who is also Huawei's deputy chair and is the daughter of founder Ren Zhengfei, was arrested in Vancouver in relation to suspicions of violations to USA sanctions against Iran.

Details of the arrest have not been released, but the U.S. has applied to extradite CFO Meng Wanzhou from Vancouver, with a bail hearing set for tomorrow.

"As there is a publication ban in effect, we can not provide any further detail at this time".

Outside of the arrest itself, very little information about the case is being released at this time, in large part because a publication ban that was requested by Meng.

Meng faces extradition to the US, where investigators are probing Huawei's alleged non-compliance with sanctions on Iran.

The Wall Street Journal reported in April that American authorities are investigating whether the Chinese tech company violated sanctions on Iran.

'The ban was sought by Ms. Meng'. Huawei also recently surpassed Apple as the second biggest maker of cellphones after South Korea's Samsung Electronics Co.

"This is sending a signal that there is a new game", Wilder said of the recent USA arrests.

The arrest is believed to be related to alleged violations of U.S. sanctions though there has been no official statement from Washington.

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In targeting Huawei, the U.S.is threatening one of the companies at the heart of Xi's long-term campaign to wrest the lead in future technologies and wean China off a reliance on foreign technology.

"This headline is quite significant as the United States government is attempting to persuade allies to stop using Huawei equipment due to security fears", said Stephen Innes, head of Asia-Pacific trade at OANDA.

New Zealand and Australia have stopped telecom operators using Huawei's equipment in new 5G networks because they are concerned about possible Chinese government involvement in their communications infrastructure.

"What makes Huawei important is that it is a leader in developing technologies that will make China less dependent on US or European suppliers", he said.

ZTE is China's second-largest telecommunications equipment maker and relies on US components for its smart phones and networking equipment.

The timing of the arrest could not have come at a worse time for Huawei. Meng, it said, was "not violating any American or Canadian law".

"Washington is attempting to damage Huawei's worldwide reputation and taking aim at the tech giant's global market in the name of law", the editorial stated.

In her first media appearance before the Chinese press in 2013, Meng said she had first joined the company as a secretary "whose job was just to take calls". Huawei has denied the links.

Founded in 1987 by Ren Zhengfei, a former People's Liberation Army engineer, Huawei has always enjoyed favorable treatment from a government that - like the USA - remains wary of employing too much foreign technology for vital communications.

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