Canada braces for retaliation from China after court rules against Huawei's CFO

Canada braces for retaliation from China after court rules against Huawei's CFO
According to Reuters, Canada's Department of Justice announced today that it has agreed to continue the extradition process against Huawei CFO Meng Wanzhou. Meng, the daughter of Huawei founder Ren Zhengfei, was originally arrested in Vancouver late last year based on a U.S. arrest warrant, and faces extradition to the states.

In January, the U.S. Justice Department issued a 13 count indictment against Huawei, two of its affiliates (Huawei Device USA and Skycom Tech) and the 46 year old Meng. U.S. authorities allege that the executive and the Huawei units committed bank fraud and deceived the U.S. government by doing business in Iran. The country is currently under economic sanctions by the U.S. Office of Foreign Assets Control (OFAC).

Meng is now under house arrest in Canada, and will make a court appearance in Vancouver on March 6th. At that time, the court will conduct extradition hearings against the Huawei executive. However, Canada's legal system allows for a number of appeals, and it could be years before Meng is actually sent to the states. President Trump could also insinuate himself into the process. Back in December the president said he might intervene if it serves the interest of the U.S. or helps bring about a trade deal with China.

Meanwhile, China is not happy about the announcement and some Canadians are worried about retaliation. Not too long after Meng was arrested, China arrested a couple of Canadians citing national security reasons, and sentenced a Canadian man to death following a drug smuggling conviction. In addition, to protest the arrest of Meng, which was at the direction of the U.S., businesses in China started punishing employees who buy an iPhone. They also rewarded those buying a Huawei handset by subsidizing those purchases.

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13 Comments

1. dimas

Posts: 3394; Member since: Jul 22, 2014

I will be very disappointed if Canada will be intimidated by China's future retaliation (or should I say, cry baby actions.) Don't let china manipulate your country, stick to your laws. If huawei is not guilty, their documents will prove it.

3. TerrySummer

Posts: 2; Member since: Mar 01, 2019

Canada has followed the rule of law and by doing that made it quite obvious that we will not be intimidated by China. If the Americans prove their evidence she will be extradited and if found guilty in the US will go to jail. It's unbelievable that the daughter of a billionaire could be so greedy as to recklessly endanger her freedom.

7. Ashoaib

Posts: 3309; Member since: Nov 15, 2013

This is all about politics. US can create as many cases and evidences as they like and Canada/uk/aus/NZ will just accept those evidences and bow down to American stories. US is feeling afraid that Chinese companies are flourishing in technology, while American companies are going down. So US is all out to pull the leg of China, because US know that it cannot compete with China. So US is playing tried and tested game of leg pulling, blaming and propaganda. This is what US is expert at. Beside that US is very well known for doing spying on other countries, if US will not stop Huawei from selling 5g equipment, then Huawei will become market leader, which can compromise US ability to spy. Because Huawei will never cooperate like what Cisco did in the past to help in spying. So Huawei must be stopped and American or at least any other western company should be allowed. Because they can act as American sheeps, which chinese are unlikely to do.

2. Poptart2828

Posts: 458; Member since: Jan 23, 2018

This is going to get messy. China could potentially ban Apple products from its country in retaliation

4. TerrySummer

Posts: 2; Member since: Mar 01, 2019

Since Apple products are manufactured in China it would not make any sense to ban them there. China has absolutely no recourse in this matter and that is why we see them floundering about and calling this a political move. It's high time the USA put China in it's place.

5. Poptart2828

Posts: 458; Member since: Jan 23, 2018

Yes they are manufactured there but can still be banned from being sold in the country. It's a possibility. I think trump will step in before this gets way too ugly. The repercussions could impact both nations severely. Iphone sales bans is the least of anyone's worries when it could escalate to full blown trade war.

8. threeline

Posts: 320; Member since: Sep 11, 2011

Step in an do what? Make a bigger mess of it?

9. threeline

Posts: 320; Member since: Sep 11, 2011

Apple should have been making the iPhone here. Making it over there for cheaper but charge us prices as if it's making it here. 1000.00 iPhone? Please.

6. mootu

Posts: 1537; Member since: Mar 16, 2017

China receives $8 for every iPhone manufactured there, i doubt they will worry too much about losing that. China could end Apple by banning manufacturing in China, they won't do that but saying China has no recourse in this matter is absolute bull.

10. S4NDY

Posts: 263; Member since: Mar 14, 2016

Mika Lauhde says that more than half of Huawei's hardware components come from outside of China - and many of the company's foreign competitors use more Chinese parts than it does. Huawei's Finnish leader excavates his cellphone and says that the security of the modem inside it has been developed at the company's research center in Ruoholahti, Helsinki. - If someone doubts its security, it is an insult to Finnish know-how.

12. HenryBlank

Posts: 18; Member since: Jun 19, 2014

R&D may be outside of China, but I know for a fact that Ericsson, Nokia and Cisco to name only a few have manufacturing plants in Guangzhou China. If "china" is the risk, then the US gov should ban them all!

11. HenryBlank

Posts: 18; Member since: Jun 19, 2014

The bullying and arrogance from the US is incredible! They USE China to manufacture practically everything to increase their profits, then when a Chinese rival poses a risk to Western interests they push for an outright BAN on that company? Think about it .. The US was caught spying red-handed, and now without any evidence they are pushing to kill-off Huawei for "spying" when there's been no evidence? Then they look for reasons to take Huawei to court for 2013 cases? The US gov is not acting like a BULLY, pure and simple. And .. all along they continue to enjoy their products made in China .. cheap to keep them profits fat! What a joke!!

13. domfonusr

Posts: 1092; Member since: Jan 17, 2014

I hate to have to say it, but it is pretty clear that Chinese phones are the way of the future for people who can't spend $1000 on an iPhone. Huawei is going to dethrone Samsung, and all the surviving OEM's will either be doing all of their manufacturing and assembly in China, or else will be domestically owned by China and tied to its government. When they are able to pay their laborers $0.32/day and work them for 36-hour shifts straight, that is the closest you can come to replacing robots with people... otherwise, their other option for work is prostitution! Take those choices and tell me what you would pick out of those...

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