The manager of Huawei threatens 30 years in the United States
| Reading time: 3 minutes
The inmate in Canada, manager of the Chinese group Huawei, faces a long sentence to prison.
- Meng Wanzhou faces more than 30 years in prison, according to the Prosecutor's Office, if it were to be extradited to the United States.
- US justice accuses Huawei's finance chief of violating Iran's sanctions.
DMeng Wanzhou, chief financial officer of the Chinese technology group Huawei, has been imprisoned in the United States for long term fraud charges. Investigators accused the manager of doing business with Iran through a company called Skycom, and therefore they violated sanctions, Canadian prosecutors said in a hearing in Vancouver on Friday. During the hearing, a bail request from Mengs was negotiated. However, there was no decision, on Monday, the hearing should be continued.
The 46-year-old is said to have deliberately overshadowed the relationship between Huawei and the Skycom company in Hong Kong. Skycom maintained commercial relationships with an Iranian telecommunications provider between 2009 and 2014, despite an EU and US trade embargo. Meng also hid from banks that Skycom was in fact a subsidiary of Huawei. He faces a sentence of 30 years in prison for "conspiracy to commit fraud by financial institutions," prosecutor John Gibb-Carsley said.
The manager of Huawei, who is also deputy director and daughter of the founder of the group Ren Zhengfei, was arrested last Saturday in Canada at the behest of US authorities. The specific allegations against them were so unclear because there was a block of information. However, this has been removed. At the hearing, the question was whether Meng could be released on bail for the time being.
The arrest hinders the relations between China and the United States
Prosecutor Gibb-Carsley called on the court to reject Meng's motion. Huawei's chief financial officer has the means to organize an escape to China that has no extradition treaty with the United States. Mengs defender David Martin said no one should be banned for his wealth. Meng is a celebrity at the center of public attention and will not bring his father, his company and their country of origin into China from a violation of the conditions of the bail in the discredit.
In the financial markets, the incident had raised concerns about a new escalation of the trade dispute between China and the United States and occasionally led to strong price losses. Beijing responded to Meng's arrest with a furious protest and asked for their release. The Chinese Embassy in Canada called on both Canada and the United States to "immediately correct misconduct" and restore Meng's personal freedom. He said he would "take all measures to protect the legitimate rights and interests of the Chinese citizen".
However, according to the US government, Huawei's business does not weigh on the negotiations in the trade dispute. "The talks in China are going well!" He tweeted US President Donald Trump on Friday morning. His chief economic advisor, Larry Kudlow, told CNBC that the arrest is not an obstacle to talks with China. The two largest economies in the world have been in trouble for months due to trade problems. Shortly before Meng's arrest, however, they had agreed a 90-day respite to avoid further escalation for the time being.