China Warns Of 'Grave Consequences' Over Arrest Of Huawei Executive

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Huawei Chief Financial Officer Meng Wanzhou was arrested in Vancouver earlier this month and reportedly charged with fraud for telling UK-based banking company HSBC that the Chinese tech giant fully complied with USA sanctions against Iran while one of its subsidiaries was not in compliance with the restrictions. "China will take further action based on the US actions".

Ms. Meng, the daughter of Huawei's founder, was detained December 1 during a layover at Vancouver International Airport at the request of the USA on suspicion of violating US sanctions against trading with Iran.

Meng faces extradition to the U.S. where she could face up to 30 years in prison if convicted.

Wanzhou is facing fraud charges in the United States related to an alleged violation of trade sanctions with Iran. The reason this case has escalated to an arrest isn't the business Huawei may or may not have done with Iranian companies, but the allegations of deliberately misleading United States banks - hence committing fraud.

China warned Canada on Saturday that there would be severe consequences if it did not immediately release Huawei Technologies' chief financial officer, calling the case "extremely nasty".

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The hearing in Vancouver is the start of a long legal process in Canada that could end with Meng being sent to the United States to stand trial.

At the same time, Huawei tried to strike a composed tone, telling The Associated Press in an email that it had "every confidence that the Canadian and USA legal systems will reach the right conclusion".

On Friday, Foreign Minister Chrystia Freeland told reporters Canada's relationship with China was important, and the country's ambassador in Beijing has assured the Chinese consular access will be provided to Meng.

Meng's bail hearing is set to resume Monday morning in Vancouver. During the meeting, she spoke through an English interpreter and presented PowerPoint slides in Chinese, saying that Huawei operated in Iran in strict compliance with United States sanctions.

A judge in the US District Court for the Eastern District of NY issued a warrant for Meng's arrest on August 22, it was revealed at the hearing Friday.

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While he was prime minister, Harper said his government was increasingly concerned "about the penetration of Huawei and ZTE", another Chinese telecom company, into the telecommunication networks of democratic countries.

The arrest, which came just after a truce was declared in the US-China trade war by Donald Trump and President Xi, has once again increased tensions between the world's two most powerful countries.

"Judges will decide", Paris tweeted in response to the comments from Beijing.

Lu also said the Canadian government did not immediately notify the Chinese embassy or consulate about Meng's arrest, as it should have under a consular agreement. The US has pressured European countries and other allies to limit use of its technology, warning that they could be opening themselves up to surveillance and theft of information. "We can't even get Apple to crack an iPhone for us in a terrorist investigation", he said.

"These are organizations ultimately ... tightly tied to Chinese security apparatus, and we think there is some serious issues there".

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Huawei, in a brief statement emailed to The Associated Press, said that "we have every confidence that the Canadian and USA legal systems will reach the right conclusion".

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