Canada's envoy to Beijing briefs China on arrest of Huawei executive: Freeland

Ren Zhengfei gives Chinese President Xi Jinping a tour of Huawei’s London offices during a visit in 2015

Ren Zhengfei gives Chinese President Xi Jinping a tour of Huawei’s London offices during a visit in 2015

The case against Meng Wanzhou, who is also the daughter of the founder of Huawei, stems from a 2013 Reuters report 131 about the company's close ties to Hong Kong-based Skycom Tech Co Ltd, which attempted to sell USA equipment to Iran despite United States and European Union bans, the prosecutor told a Vancouver court.

Speaking at a news conference in Milan, Lavrov said the detention showed how Washington imposes its laws beyond its jurisdiction.

Canadian telecom giants Telus Corp. and BCE Inc. could face at least $1-billion in costs if Canada follows the lead of close allies the United States, Australia and New Zealand in barring telecommunications equipment made by China's Huawei from their next generation networks, industry sources told The Globe and Mail.

The U.S. alleges that Huawei used an unofficial subsidiary called Skycom to do business in Iran for Iranian telecom companies, breaching U.S. and European sanctions against the Middle Eastern country, according to Crown attorney John Gibb-Carsley. While unproven, the allegation was enough to take action against the company, including a ban on Huawei products in USA military bases in May.

In a statement, Huawei said it had "every confidence that the Canadian and USA legal systems will reach the right conclusion".

He also outlined the Byzantine structure and what he called a constantly changing nature of US sanctions against Iran. Martin, her lawyer, said she would never breach a court order on bail because that would embarrass her father and China.

USA intelligence agencies have also alleged that Huawei is linked to China's government and its equipment could contain "backdoors" for use by government spies.

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Her lawyer said she avoided the USA not because of any investigation but because the country has been unfriendly toward Huawei.

Prosecutor John Gibb-Carsley said Meng, who has vast financial resources as the daughter of Huawei's founder, has incentive to flee Canada because she faces fraud charges in the USA that could bring up to 30 years in prison.

Freeland reiterated what Prime Minister Justin Trudeau said Thursday: that Meng's arrest was part of an independent legal process that is separate from politics.

That doesn't mean that China is likely to forget about Meng Wanzhou's December 1 arrest when they next come face-to-face with Canadian officials, he added.

China says Meng - the daughter of Huawei founder Ren Zhengfei, a former engineer in China´s People´s Liberation Army - has violated no laws in Canada or the United States and has demanded her release.

Huawei Chief Financial Officer Meng Wanzhou was arrested in Canada on Saturday at the same time that Trump and China President Xi Jinping met on the sidelines of the G20 Summit in Buenos Aires, to discuss a trade truce.

A Huawei spokesman declined to comment on Thursday and said that Wednesday's statement still stands.

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"The threat from these companies lies in their access to critical internet backbone infrastructure", she said.

Separately, Huawei said on Friday that it "categorically" rejected any allegation that the company poses a security risk, adding that it has "never been asked by any government to build any backdoors or interrupt any networks".

David Vigneault did not name China or Huawei in his speech, but he noted that "many of these advanced technologies are dual-use in nature in that they could advance a country's economic, security or military interests".

The Trump administration has tightened regulations on high-tech exports to China and made it harder for Chinese firms to invest in US companies or to buy American technology in cutting-edge areas like robotics, artificial intelligence and virtual reality.

Meng is a prominent member of Chinese society as deputy chairwoman of the Huawei board.

However, Courtis added that Canada likely did not have much choice but to apprehend Meng given the nature of its relationship with U.S. President Donald Trump. That was about six years after the company was founded to sell phone switches. The White House also denied any involvement in Meng's arrest.

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