China warns of ‘serious consequences’ if Canada doesn't release detained Huawei executive

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Ms Meng was arrested on December 1 as she transited through Vancouver on her way to Mexico, coinciding with USA president Donald Trump's meeting his Chinese counterpart Xi Jinping at the G20 summit in Argentina that culminated in a temporary detente to the trade war between the world's two largest economies.

If extradited to the US, Meng would face charges of conspiracy to defraud numerous financial institutions, a Canadian court heard on Friday.

The arrest was made at Washington's request as part of a United States investigation of an alleged scheme to use the global banking system to evade U.S. sanctions against Iran, according to people familiar with the probe.

Canada's Department of Justice confirmed last week that the senior Huawei executive had been detained on December 1 and that she was now sought for extradition to the U.S., where the New York Times said she has faced "unspecified charges from the Eastern District of New York" since August.

Chinese telecom giant Huawei's chief financial officer, arrested in Canada, faces USA fraud charges for allegedly lying to banks about the use of a covert subsidiary to sell to Iran in breach of sanctions, a bail hearing heard Friday. "The arrest of Meng Wanzhou, I believe, should be seen in the context of the Sino-U.S. trade war", Ming said. The company has said it complies with all applicable export control and sanctions laws and other regulations.

Washington and Beijing have exchanged steep tariffs on more than $300 billion in total two-way trade, locking them in a conflict that has begun to eat into profits.

China has demanded her release, saying there has been no wrongdoing.

Japan is expected to ban government use of products made by Huawei and ZTE over cybersecurity concerns, local media reported on Friday. "But we're going to have to live with that", Mulroney said, according to Reuters.

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Although there are some waivers, US Treasury Secretary Steven Mnuchin has said the US will "aggressively" target any firm or organisation "evading our sanctions". All security costs would be borne by her. But the extradition process could drag on for months. The court heard Meng's husband Xiaozong Liu owns two mansions in the city.

Those findings led the U.S.to launch a movement called Five Eyes, made up of the United States, Canada, the U.K., New Zealand, and Australia to monitor the Huawei situation, with Japan and Germany following along at home.

Ericsson of Sweden, the main equipment supplier for the Rogers wireless networks, and Nokia of Finland are also global players in Canada but Surtees considers Huawei to be the market leader.

The United States has 60 days to make a formal extradition request, which a Canadian judge will weigh to determine whether the case against Meng is strong enough.

Meng's detention also raised concerns about potential retaliation from Beijing in Canada, where Prime Minister Justin Trudeau sought to distance himself from the arrest. The story caused concern among banks that did worldwide business with Huawei, he said.

The company faces being shut out of Australia, New Zealand and U.S. 5G rollouts, and British telecom group BT revealed on Wednesday it was removing Huawei equipment from its core cellular network.

Canadian officials have said Ottawa was continuing to review Huawei's technology for use in upcoming fifth-generation networks.

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