Even as Sino-US trade relations are going through a sensitive phase, Huawei CFO Meng Wanzhou’s arrest in Canada and extradition to the United States can lead to political imbroglio for both nations.
Meng Wanzhou is also the daughter of the founder of Huawei, a leading telecom company in China. Though she was arrested in Vancouver on 1 December, details of her arrest were not released.
Huawei CFO Meng Wanzhou Arrested in Canada for Extradition to the US: Possible Violation of Sanctions Against Iran Reason for Arrest
Huawei sources said it had not much information about the charges and was “not aware of any wrongdoing by Ms. Meng.” Notably, China’s embassy in Canada registered its protest against this move and demanded Meng’s release.
As mentioned above, China and the United States are in a trade war as both the nations have imposed anti-dumping duties on each other’s products.
Interestingly, both countries agreed upon a 90-day tariff truce, which is likely to be collapsed. This truce was negotiated between president Donald Trump and Xi Jinping during G20 meet.
The Reason Behind This Arrest
According to the New York Times reports, Huawei was summoned by the US commerce and treasury departments for suspected violation of sanctions against both Iran and North Korea. The Chinese telecom giant is under investigation for potential breaches of US sanctions against Iran.
The Chinese government is presumed to be using Huawei’s mobile technology to spy over the US national security, argued US lawmakers.
US Senator Ben Sasse reacted to the arrest and spoke to Associated Press that China government often “using private sector entities” to undermine US national security interests.
He also added that “Americans are grateful that our Canadian partners have arrested the chief financial officer.”
The Real Concern of Western Governments
Huawei has emerged as one of the largest telecom equipment and services providers in the world. So much so, the company achieved the second spot after Apple in shipping smartphones in 2018.
Western governments are apprehensive about Huawei’s access to fifth-generation (5G) mobile networks as China can use this technology to keep vigil on the United States and other nations. However, Huawei denied these accusations.
The arrest of Huawei’s chief financial officer will spell long-term discord between the United States and China. Since business and politics go hand in glove, the spoilt relation can wreak havoc on other small nations, who have a political and commercial alliance with both countries.
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