China summons Canada envoy over detained Huawei exec: state media

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Chinese Tech Exec Faces 30 Years in Prison in U.S., Canadian Prosecutor Says

Huawei CFO Meng Wanzhou, 46, who is also the daughter of the company founder, was arrested on December 1 at the request of the United States.

USA prosecutors argue that Meng was not truthful to banks who asked her about links between the two firms, the court heard yesterday.

Crown counsel told a court in Vancouver the U.S.is seeking Meng's extradition for offenses linked to violations of a company called Skycom. She was arrested at the Vancouver airport on Saturday after a request by the United States.

Meng's alleged wrongdoings date back to 2013, which raises the question why Washington waited for so long, with some speculating it maybe a sneak attack by the U.S. amid an escalating trade war between Washington and Beijing.

Meng's arrest during a stopover in Vancouver, announced by the Canadian authorities on Wednesday, pummelled stock markets already nervous about tensions between the world's two largest economies on fears the move could derail the planned trade talks.

Meng's lawyer said at the hearing that the fact that a person has extraordinary resources can not be a factor that would exclude them from bail.

"You can rely upon her personal dignity", he said, adding that to breach a court order "would be to humiliate and embarrass her father, who she loves".

Meng will spend the weekend in jail after a Canadian judge said Friday that he needs to weigh her proposed bail conditions.

In a statement Saturday morning China time, Huawei said it has "every confidence that the Canadian and US legal systems will reach the right conclusion" in Meng's case.

Chinese state media have argued that the United States was abusing the law to hurt Huawei's worldwide reputation.

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Canada's arrest of Meng at the request of the USA, while she was changing plane in Vancouver, was a serious breach of her rights, Chinese Vice Foreign Minister Le Yucheng said. A 2013 Reuters report said that SkyCom attempted to sell U.S. equipment to Iran despite U.S. and European Union bans.

Huawei's share of the Canadian smartphone market has been tiny - about 3.8 per cent, according to market research from IDC Canada - but outside of Canada the company is a juggernaut, overtaking Apple earlier this year in smartphone sales and employing more than 170,000 people around the world. At the time, Meng served as the management firm's company secretary.

Huawei said Friday that it would "continue to follow the bail hearing", expressing "every confidence that the Canadian and U.S. legal systems will reach the right conclusion". Two of the sources said that technically Skycom was controlled by Iranians to comply with local law but that it effectively was run by Huawei.

"Skycom employees, it's alleged, were Huawei employees", Gibb-Carsley said.

A Huawei spokesman told Reuters in 2013: "Huawei has established a trade compliance system which is in line with industry best practices and our business in Iran is in full compliance with all applicable laws and regulations including those of the UN".

It also said that Huawei's engagement with Skycom is a normal business co-operation and it requires Skycom to make commitments on observing applicable laws.

The executive is the daughter of Huawei's founder.

Navarro said the arrest was the result of "the bad actions of Huawei", adding there was a "frightening" risk that the Chinese government could use the company's products for spying.

"We hope that Japan can provide a fair competitive environment for Chinese companies operating in Japan, and avoid doing anything that harms mutual trust and cooperation", Geng said.

USA intelligence agencies have also alleged that Huawei is linked to China's government and its equipment could contain "backdoors" for use by government spies.

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