What does Meng Wanzhou's arrest means for US-China conflict

Huawei's Executive Board Director Meng Wanzhou attends the VTB Capital Investment Forum

After the arrest of Huawei Technologies CFO Wanzhou Meng in Vancouver this past week, reasons for her arrest have now been brought to light.

A Chinese telecommunications executive is being accused of fraud by the USA government, which wants Meng Wanzhou extradited from Canada to face the charge.

According to the report, "Meng's attorney said she would not breach a court order because doing so would embarrass her personally, and would also humiliate her father, Huawei and China itself". He said her actions exposed the banks to potential fines for violating US sanctions.

"Huawei is SkyCom. This is the alleged fraud", Canadian prosecutor John Gibb-Carsley said.

The US Justice Department will have 60 days to request her extradition, which would have to be approved by the Canadian court.

"But one thing that is undoubtedly true and proven is the U.S. is trying to do whatever it can to contain Huawei's expansion in the world simply because the company is the point man for China's competitive technology companies", it said.

It's unclear why it took the U.S. five years to take any serious action against Meng, - an issue raised by her defense, - but her arrest comes less than a week after the USA and China announced a 90-day truce in the ongoing trade war - and threatens to send it crumbling. While unproven, the allegation was enough to take action against the company, including a ban on Huawei products in United States military bases in May.

Washington's charges against Huawei executive Meng Wanzhou are linked to a 2013 case, it's been revealed - raising the question whether her sudden arrest amid a truce in the US-China trade war is a thinly-veiled sneak attack. Canadian President Justin Trudeau has said the country's courts acted independently and there was no political involvement in the case.

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

The US and Chinese tech industries depend on each other so much for components that "it is very hard to decouple the two without punishing US companies, without shooting ourselves in the foot", said Adam Segal, cyberspace analyst at the Council on Foreign Relations. If convicted, Meng faces more than 30 years in prison. Crown prosecutors argue Meng violated section 380 of Canada's criminal code, which pertains to fraud.

Ming Xia, a professor of political science and global affairs at City University of NY, said Meng's arrest was another example of how members of Trump's trade team know how to use very sharp, pinpoint moves to teach China a lesson.

"China talks are going very well!"

The case will likely intensify pressure on the Trudeau government, which is being urged to refuse to allow Huawei products in Canada's next-generation 5G telecommunications networks.

In 2014, British Columbia resident Su Bin was arrested by Canadian officials, on accusations that he had stolen top-secret American fighter jet plans.

Ms Meng, who also used the English names Cathy and Sabrina, served on the board of Skycom between February 2008 and April 2009, according to Skycom records.

The case has emerged in the midst of U.S. moves against Chinese companies accused of stealing technology and Beijing's suspicion that Washington is trying to use politics to weaken China's continued growth.

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