Huawei CFO is arrested in Canada over Iran links

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At the G20 summit in Argentina last weekend, U.S. President Donald Trump and Chinese President Xi Jinping agreed to a 90-day ceasefire in what had until then been an escalating trade war, putting on hold Trump's plans to further increase tariffs on Chinese goods.

Meng was arrested in Vancouver on Saturday and is being sought for extradition by the U.S.

The Wall Street Journal reported last month that U.S. officials had briefed counterparts in countries including Germany, Japan and Italy on potential security risks from Huawei equipment.

Confirming that China has lodged stern representations the United States and Canada, Geng demanded that Canada "immediately clarify the reasons for this detention, immediately release the detainee, and effectively protect the legitimate rights of the detainee". The Globe and Mail newspaper, citing law enforcement sources, said she is suspected of trying to evade US trade curbs on Iran.

Huawei chief financial officer Wanzhou Meng's family appears to have connections to at least two pricey Vancouver homes including one in the exclusive Shaughnessy neighbourhood, property records show. Authorities have suspected the company has been involved in defying sanctions on Iran since 2016, when the USA investigated Huawei's Chinese rival ZTE over similar violations.

The handset and telecommunications equipment maker said it complies with all applicable export control and sanctions laws and USA and other regulations. ZTE, China's second-largest telecoms equipment maker, agreed to pay $1.4 billion in total fines to the U.S. after Washington slapped a ban in April on purchases of essential American components for seven years to punish the company for Iran sanctions violations.

There had already been concerns in the United States over the security of Huawei's technology amid worries that the Chinese government could use the tech company's products to spy on Americans, an allegation the company has long denied. DoubleLine Capital CEO Jeffrey Gundlach told Reuters on Tuesday that the U.S. economy is "poised to weaken".

Huawei, the biggest global supplier of network gear used by phone and internet companies, has been the target of US security organizations.

Dow futures slide after the arrest of Huawei CFO Meng Wanzhou in Canada; Doug McKelway reports from the White House.

Meng had been widely expected to one day lead the company, which her father Ren Zhengfei created. BT, Britain's largest mobile provider, said this week it was removing the equipment of Huawei from its 4G cellular network.

Huawei's chief financial officer Meng Wanzhou is seen in a portrait

They urged him to keep Huawei off Canada's next- generation network.

Huawei is not the first Chinese telecoms equipment firm to face the ire of U.S. authorities. Huawei's smaller rival ZTE Corp pleaded guilty a year ago to conspiring to evade embargoes by selling US equipment to Iran.

David Mulroney, a former Canadian ambassador to China, says that while he doesn't want to overstate the possibility of a Canadian being jailed, China will be looking for ways to strike back.

In London, the stock market plunged by more than three percent.

Meng's arrest could have a significant effect on markets and on US-China relations.

Meng rose through the company ranks through hard work rather than privilege, said Wenran Jiang, a senior fellow at the University of British Columbia's Institute for Asian Research. The company has been accused of using its devices to pass on information to the Chinese government, prompting the US Department of Defense to ban their sale on military bases. These include director of the global accounting department, chief financial officer of Huawei Hong Kong and president of the accounting management department, the website said.

Chinese authorities have criticized the United States and Canada, saying they did not explain why Ms. Meng was arrested and demanded her release. Nobody knows how China will retaliate if Meng is ultimately extradited to NY to face charges.

He declined to talk about the specifics of the case and said he didn't know if Trump knew about before it happened but added that there has been enormous concern about the practice of Chinese firms like Huawei allegedly using stolen USA intellectual property. The company's yearly financial report says the earnings come in equal part from business inside and outside the country.

U.S. Senator Ben Sasse praised the move and said that it was "for breaking U.S. sanctions against Iran".

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