US stocks tumble on US-China trade jitters, oil price slide

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Security concerns have hampered Huawei's business in the U.S.as acquisitions were rejected and companies warned not to source network equipment from Huawei or ZTE.

The arrest is related to violations of USA sanctions, a person familiar with the matter said, though officials have so far stayed mum on her allegations.

The Dow Jones Industrial Average fell almost 400 points Thursday morning, or 1.5 percent, extending the week's losses after a Chinese telecom executive was arrested in Canada on behalf of the USA, stoking growing fears about trade tensions with China.

"Wanzhou Meng was arrested in Vancouver on December 1st".

It's particularly worth noting that Meng was arrested on the same day that U.S. President Donald Trump and his Chinese counterpart Xi Jinping held a significant bilateral meeting in Buenos Aires, Argentina.

"We are closely watching the developments in Asia after reports that Canada has arrested the Huawei CFO facing USA extradition for allegedly violating Iran sanctions".

"Recently, our corporate CFO, Ms. Meng Wanzhou, was provisionally detained by the Canadian Authorities on behalf of the United States of America, which seeks the extradition of Ms. Meng Wanzhou to face unspecified charges in the Eastern District of NY, when she was transferring flights in Canada."The company has been provided very little information regarding the charges and is not aware of any wrongdoing by Ms. Meng. The company believes the Canadian and USA legal systems will ultimately reach a just conclusion", the statement continued".

'The Canadian police, at the request of the United States, arrested a Chinese citizen who had not violated any US or Canadian law, ' the embassy said in a short statement on its website.

The SCMP obtained a transcript of an internal question-and-answer between Meng and her father, Huawei's founder Ren Zhengfei.

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Huawei has said Ms. Meng was arrested at the request of the USA, which is seeking her extradition.

What has Canada said about the arrest?

"The company has been provided with very little information regarding the charges and is not aware of any wrongdoing by Ms. Meng". Huawei said it complies with all laws and rules where it operates, including export controls and sanctions of the United Nations, the U.S. and European Union.

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

The probe of Huawei is similar to one that threatened the survival of China's ZTE Corp, which pleaded guilty in 2017 to violating United States laws that restrict the sale of American-made technology to Iran. In a report released by the U.S. Permanent Select Committee on Intelligence in 2012, Huawei and ZTE Corp. were tagged as potential threats to U.S. security interests.

The US has also restricted US firms from selling parts to Chinese chipmaker Fujian Jinhua. The aim will be for the United States to ease its tariffs; in exchange, China will be expected to lower trade barriers and further open its markets to American businesses.

Meng's arrest has "potentially huge implications" for the trade war and signals the United States government is willing to get tough on Chinese companies that do business with Iran, according to Michael Every, head of Asia-Pacific research at investment bank Rabobank. Trump restored access after ZTE agreed to pay a $1 billion fine, replace its executive team and embed a US-chosen compliance team in the company. The US, Australia and New Zealand have blocked the use of the Chinese firm's equipment in infrastructure for new faster 5G mobile networks.

Its growing smartphone brand is among the top three global suppliers behind Samsung Electronics and Apple Inc.by number of handsets sold.

U.S. Senator Ben Sasse praised the move and said that it was "for breaking U.S. sanctions against Iran". -China relations. As of this morning, that relationship appears very, very rocky.

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