Huawei CFO Meng Wanzhou’s arrest may prompt China to retaliate, 'take hostages,' expe

Huawei CFO Meng Wanzhou’s arrest may prompt China to retaliate, 'take hostages,' expert says

By Katherine Lam | Fox News
Published 2 hours ago
Last Update 1 hour ago

Dow futures slide after the arrest of Huawei CFO Meng Wanzhou in Canada; Doug McKelway reports from the White House.

China could 'take hostages' and is almost certain to retaliate against the United States, experts say, after the stunning arrest of a top Chinese tech executive for allegedly trying to skirt sanctions on Iran.

Huawei Technologies' chief financial officer Meng Wanzhou was arrested Saturday in Canada and faces extradition to the U.S. Meng was taken into custody on behalf of the U.S. while she was transferring flights in Vancouver, the tech company said.

Chinese officials on Thursday blasted Meng's arrest — but experts warn more forceful actions, including the possibility of tit-for-tat detentions of high-profile citizens, could be coming.

James Lewis, the director of technology policy at the Center for Strategic and International Studies, told Axios the U.S. should be prepared for a backlash and warned American tech executives to steer clear of China for now.

"If I was an American tech executive, I wouldn't travel to China this week," warned Lewis, who labeled Huawei "one of the Chinese government's pet companies" and charged the communist country's leaders wouldn't be afraid to "take hostages."

China on Thursday demanded Canada release a Huawei Technologies executive who was arrested in a case that adds to technology tensions with Washington and threatens to complicate trade talks.

Chinese foreign ministry spokesman Geng Shuang on Thursday called Meng’s arrest a violation of human rights and demanded the “immediate release” of the 46-year-old executive, who also goes by the name Sabrina.

“Detaining a person without providing an explanation has undoubtedly violated her human rights,” Geng said, adding the Chinese government “has made clear our solemn positions to the U.S. and Canada.”

Geng said the U.S. and Canada haven’t provided reasons for Meng's detention. But the Wall Street Journal reported in April that U.S. authorities were investigating whether Huawei violated sanctions on Iran, leading the Chinese government to appeal to Washington to avoid any steps that might have damaged business confidence.

Meng is the deputy chairman of the company’s board and the daughter of its founder, Ren Zhengfei, a former Chinese military engineer. Her stature in Chinese culture has been compared to American tech giants such as Steve Jobs or Mark Zuckerberg.

An editorial in the pro-government Global Times accused the U.S. of “maliciously finding fault” with Huawei.

“Washington is attempting to damage Huawei's international reputation and taking aim at the tech giant's global market in the name of law,” the editorial stated. “The Chinese government should seriously mull over the U.S. tendency to abuse legal procedures to suppress China's high-tech enterprises. It should increase interaction with the U.S. and exert pressure when necessary. China has been exercising restraint, but the U.S. cannot act recklessly. U.S. President Donald Trump should rein in the hostile activities of some Americans who may imperil Sino-U.S. relations.”

Meng’s arrest and detention have only amplified the already-tense state of U.S.-China relations. Though Trump and Chinese President Xi Jinping announced a temporary truce in a tariffs war -- with Trump agreeing to suspend U.S. tariff hikes for a period -- a more permanent resolution is nowhere in sight. Trump and Xi have dug in on their respective positions and have mostly been waiting for the other party to blink. Neither has.

Huawei Technologies Ltd., the biggest global supplier of network gear used by phone and Internet companies, has previously been the target of U.S. security concerns. Under Trump and his predecessor, former President Barack Obama, Washington has pressured European countries and other allies to limit their business with Huawei, alleging the company's technology aids China's spy operations.

Huawei said in a statement Wednesday it has not been provided many details about Meng's arrest.

"The company has been provided very little information regarding the charges and is not aware of any wrongdoing by Ms. Meng," the statement said.

The Associated Press contributed to this report.

https://www.foxnews.com/world/china-...es-expert-says

I didn't even know we could do something like this. Under what authority?

What is Huawei? Chinese tech firm under microscope after CFO's arrest

By Thomas Barrabi
December 06, 2018

The arrest of Huawei CFO Meng Wanzhou in Canada on Wednesday brought the Chinese telecom giant’s business practices under global scrutiny and raised questions about the state of tenuous trade negotiations between the U.S. and China.

Meng, 46, faces extradition to the U.S. after her arrest on suspicion of violating existing sanctions against Iran. Aside from her role as a top Huawei executive, she is the daughter of the company’s founder, Ren Zhengfei.

Huawei is among China’s most influential firms, with revenue of roughly $92 billion in 2017 alone, according to Reuters. The company ranks as the world’s top supplier of telecommunications network equipment and the second-most prolific maker of smartphones, ranking ahead of California-based Apple and trailing only South Korea-based Samsung.

Huawei’s rise to dominance has generated controversy. The firm became prominent in the 1990s amid allegations of copying rival technology and undercutting prices. The U.S. government has largely banned the use of Huawei equipment by its agencies, and intelligence officials have warned that Beijing may have the ability to tap into the firm’s equipment to spy on users.

Under former President Barack Obama, the U.S. government pressured allies to limit their use of Huawei technology due to security concerns. The Trump administration has argued that Huawei has benefited from market manipulation and other unfair practices. Australia and New Zealand recently banned Huawei from building 5G networks in their countries.

The dispute over Meng’s arrest comes just days after the U.S. and China agreed to a temporary truce on their escalating trade conflict. The U.S. has slapped tariffs on billions of dollars in Chinese goods in what the Trump administration says is an effort to crack down on intellectual property theft and unfair trade practices. Beijing has responded with retaliatory measures.

Meng’s arrested caused global markets to tumble and prompted a stern response from China, which has demanded her immediate release. The exact circumstances of her arrest were unclear.

The Wall Street Journal reported earlier this year that U.S. officials were investigating Huawei’s ties to Iran.

https://www.foxbusiness.com/technolo...er-cfos-arrest