Huawei Founder’s Daughter and CFO Wanzhou Meng Arrested in Canada For Violating Iran Trade Sanctions

Huawei’s CFO Wanzhou Meng was arrested by Canada’s law enforcement agency on December 1st at the request of the US for violating sanctions against Iran. Meng is the daughter of Huawei’s founder Ren Zhengfei.

The bail hearing for her arrest is scheduled for Friday. There are no more details regarding her arrest due to a publication ban.

“She is sought for extradition by the United States, and a bail hearing has been set for Friday,” Justice Department spokesman Ian McLeod said in a statement to The Globe and Mail on Wednesday. “As there is a publication ban in effect, we cannot provide any further detail at this time. The ban was sought by Ms. Meng.”

There were reports earlier this year that Huawei ignored the sanctions imposed on Iran and supplied tech equipment to it.

This move is likely going to make the relationship between China and the United States worse as Huawei is the Chian’s smartphone manufacturer. The company has already been banned from selling network equipment and smartphones in the United States so this move is unlikely to have any effect on its non-existent business activities there.

Huawei has already issued a statement regarding the arrest of their CFO in Vancouver, Canada.

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 New York, 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 US legal systems will ultimately reach a just conclusion.

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 EU.

Given that Meng is a high profile executive of Huawei, it is likely that she will get bail during her hearing on December 7th. But that is unlikely to not have a negative impact on the already strained trade relations between the United States and China.

[Via The Globe and Mail]