China demands release of Huawei executive arrested in Vancouver

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Prime Minister Justin Trudeau is denying any political involvement in the arrest of a top Chinese tech executive at the Vancouver airport last weekend, while experts warn the move could put a chill on Canada-China relations. "After some initial euphoria it became clear that there weren't a lot of detailed preparations, and therefore nobody really knew what was the likelihood of this agreement lasting".

Marty Kady, the editor of Politico Pro pointed out on Twitter that Meng's detention was the "equivalent of an Apple or Facebook exec being arrested in China".

Geng said repeatedly that China has demanded Canada and the United States explain the reasons for Meng's detention.

Liu Weidong, a China-US affairs expert from the Chinese Academy of Social Sciences, said it was a calculated act by Washington aimed at improving its hand in trade negotiations with Beijing.

"If the USA couldn't break the 2 percent growth environment, with zero-bound interest rates and a rapidly expanding balance sheet early in the economic cycle, why would you ever think we could do it when interest rates are rising and balance sheet is shrinking and we are basically 9-10 years into an aging economic cycle", he said. "At any other time, if the Chinese were feeling more confident, if they were feeling their economy were more robust, the response would have been to cancel any pledges they made".

She is the daughter of the company's founder and a member of the inner elite circle in that country - akin to royalty.

Huawei issued a statement saying Meng was changing flights in Canada when she was detained "on behalf of the United States of America" to face "unspecified charges" in NY.

Earlier this year, the United States almost drove Huawei's biggest Chinese rival, ZTE Corp., out of business for selling equipment to North Korea and Iran in violation of US sanctions.


China's call for Meng's immediate release was front page news in Chinese city and business newspapers, and sparked strong nationalist sentiment on social media.

At the same time, United States national security adviser John Bolton said global Chinese tech firms like Huawei would be a "major subject" of discussion between the USA and Chinese governments during their trade negotiations, although Bolton did not specify whether Meng's case would be covered in future talks.

"Huawei complies with all applicable laws and regulations where it operates, including applicable export control and sanction laws and regulations of the UN, US and European Union", the company said in a statement.

The timing of the arrest couldn't have been more awkward.

It came on the same day Trump and Chinese President Xi Jinping dined together at the G20 summit in Buenos Aires.

The company is said to be employee-owned but there has always been speculation about Huawei's links to the Chinese Government.

"There clearly are vulnerabilities, because Huawei at the end of the day, although it takes great pride in being a private corporation and I believe genuinely wants to be one ... has to do what the Chinese Communist Party tells it to do", Mr Inkster told Breakfast's Fran Kelly.

"It could jeopardize all of this", Sui said of the arrest.


"Neither the U.S. nor Canada has made any clarification on the reason for the detention so far", he said. "We were advised by them with a few days' notice that this was in the works but of course there was no engagement or involvement in the political level in this decision because we respect the independence of our judicial processes", he said Thursday. The Trump administration says they benefit from improper subsidies and market barriers.

Evans argued the arrest is just one small part of a broader, longer-term geopolitical story playing out between the USA and China, and it is concerning for Canada to be caught in the middle.

The Latest on the arrest of an executive of Chinese telecoms equipment maker Huawei Technologies.

Canadian officials said Meng faces possible extradition to the United States.

Bolton also declined to discuss specifics over Meng's arrest, saying it was a matter for law enforcement. "We are working very closely with the broader security community".

Jones happened to be presenting his office's first report assessing cyber security threats. Similar allegations of breaching USA export restrictions led to rival Chinese telecoms equipment maker ZTE Corp being hit with a devastating ban and heavy fines this year.

Officials in some governments, particularly the United States, have voiced concern that his company is close to the Chinese military and government. "Would not want to be a Canadian business leader in China right now".


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