Top Chinese telecom executive arrested in Canada for fraud and violation of Iran sanctions

Make sure to let us know what you think... we now have comments turned ON below the article!

The U.S. government has long suspected that Chinese telecom equipment giant Huawei had links to the Chinese military and/or communist party, and that the corporation had secretly violated U.S. economic sanctions against Iran, for which the company needed to be held accountable.

Thus, when Huawei’s Chief Financial Officer Meng Wanzhou was changing flights at an airport in Vancouver, Canada, on Dec. 1, law enforcement pounced and placed her under arrest on accusations of fraud.

The New York Times reported that Canadian law enforcement officials made the arrest at the request of the U.S. government, which is seeking to extradite the Chinese official to America for prosecution.

This despite the fact that the arrest threw a wrench into President Donald Trump’s efforts at trade negotiations with China, not to mention causing turmoil in the international markets.

Top executive at Huawei

The 46-year-old Meng is the daughter of Huawei founder and leader Ren Zhengfei, a former Chinese military engineer who started the company to produce telephone switches in 1987 and eventually grew to become the world’s second-largest manufacturer of telecom equipment. Interestingly, “Huawei” translates to “China’s Achievement.”

Meng started off as a secretary at her father’s company in 1993, eventually earned a masters degree in management and transferred to the finance department of the business, and then worked her way up to be the chief finance officer. She now also serves as the public face of the corporation to the business world.

As part of her greater responsibilities, Meng sat on the board of a Hong Kong-based affiliate known as Skycom Tech. Skycom Tech is accused of having violated international sanctions to conduct business in Iran. Meng is also accused of being personally involved in deceiving financial institutions into conducting transactions that were in violation of the sanctions against Iran.

Fraud and violation of economic sanctions

At a bail hearing in a Canadian court on Friday, Canadian authorities accused Meng of fraud and said she had “direct involvement” in convincing financial institutions that Huawei and Skycom were in strict compliance with the sanctions against Iran, even though they were not.

Huawei has denied that any wrongdoing occurred, maintaining that all business conducted in Iran was lawful and demanding that Meng be immediately released from custody.

But the U.S. has been investigating Meng and Huawei’s business dealings in Iran for several years, and White House economic adviser Larry Kudlow said Huawei has been repeatedly warned against violating the sanctions. In an appearance on CNBC on Friday, Kudlow said, “We have these sanctions on Iran, it runs against our policy, why shouldn’t we enforce that?”

[show_poll poll_id=1125]

It remains to be seen if Meng will be ultimately prosecuted for fraud or released by Canadian officials, or if she is extradited to the U.S. to be held accountable for violating the Iran sanctions.

It further remains to be seen how this arrest and potential prosecution will impact the financial markets — hint: the markets don’t like the uncertainty — and U.S-Chinese relations, particularly with regard to trade imbalance and technology issues.

856 Responses

  1. You’re so interesting! I do not suppose I have read through something like that before. So wonderful to find another person with unique thoughts on this subject. Really.. many thanks for starting this up. This site is one thing that’s needed on the web, someone with some originality!

  2. You’re so interesting! I don’t think I’ve truly read through something like that before. So nice to find somebody with some original thoughts on this subject. Really.. thanks for starting this up. This website is something that is required on the web, someone with some originality!

  3. I was more than happy to find this site. I want to to thank you for ones time just for this wonderful read!! I definitely savored every bit of it and i also have you saved as a favorite to check out new things in your blog.

  4. Having read this I thought it was really informative. I appreciate you finding the time and energy to put this information together. I once again find myself spending way too much time both reading and leaving comments. But so what, it was still worthwhile!

  5. An intriguing discussion is definitely worth comment. I think that you should publish more on this issue, it may not be a taboo matter but generally people do not discuss these issues. To the next! Best wishes!!

  6. I blog quite often and I genuinely appreciate your content. This article has really peaked my interest. I’m going to book mark your blog and keep checking for new details about once per week. I subscribed to your RSS feed too.

  7. Hello, I believe your web site could be having browser compatibility problems. When I take a look at your website in Safari, it looks fine however when opening in Internet Explorer, it has some overlapping issues. I merely wanted to provide you with a quick heads up! Aside from that, wonderful blog!

  8. You have made some good points there. I looked on the net for more information about the issue and found most individuals will go along with your views on this website.

  9. I’m amazed, I have to admit. Rarely do I come across a blog that’s both equally educative and interesting, and without a doubt, you’ve hit the nail on the head. The issue is something which not enough people are speaking intelligently about. I am very happy that I stumbled across this in my search for something regarding this.

  10. I’m impressed, I must say. Seldom do I come across a blog that’s both equally educative and entertaining, and without a doubt, you’ve hit the nail on the head. The issue is something that not enough folks are speaking intelligently about. I am very happy that I came across this during my hunt for something relating to this.

  11. Right here is the right webpage for anyone who really wants to understand this topic. You understand so much its almost tough to argue with you (not that I personally will need to…HaHa). You certainly put a new spin on a subject which has been written about for a long time. Great stuff, just great!

Leave a Reply

Your email address will not be published.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.