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China telecoms giant Huawei CFO arrested in Canada

Reuters  |  VANCOUVER/WASHINGTON 

By and Karen Freifeld

VANCOUVER/(Reuters) - has arrested Chinese telecoms giant Huawei's in Vancouver, where she is facing extradition to the United States, Canada's said on Wednesday.

The arrest is related to violations of U.S. sanctions, a person familiar with the matter said. was unable to determine the precise nature of the violations.

Sources told in April that U.S. authorities have been probing Huawei, one of the world's largest makers of telecommunications network equipment, since at least 2016 for allegedly shipping U.S.-origin products to and other countries in violation of U.S. export and sanctions laws.

Meng Wanzhou, who is one of the vice chairs on the company's board and the daughter of company founder Ren Zhengfei, was arrested on Dec. 1 and a court hearing has been set for Friday, a said.

confirmed the arrest in a statement and said that it has been provided little information of the charges, adding that it was "not aware of any wrongdoing by Ms. Meng."

China's embassy in said it resolutely opposed the arrest and called for Meng's immediate release.

The arrest could drive a wedge between and the just days after and held a meeting in where they agreed to steps to resolve a trade war.

The sources said in April the probe is being run out of the U.S. attorney's office in Brooklyn.

The on Wednesday declined to comment. A for the U.S. attorney's office in Brooklyn also declined to comment.

The probe of is similar to one that threatened the survival of China's Corp , which pleaded guilty in 2017 to violating U.S. laws that restrict the sale of American-made technology to

Earlier this year, the banned American firms from selling parts and software to ZTE, which then paid $1 billion this summer as part of a deal to get the ban lifted.

In January 2013, reported that Hong Kong-based Tech Co Ltd, which attempted to sell embargoed computer equipment to Iran's largest mobile-phone operator, had much closer ties to than previously known.

Meng, who also has gone by the English names and Sabrina, served on the board of between February 2008 and April 2009, according to records filed with Hong Kong's Companies Registry.

Several other past and present Skycom directors appear to have connections to Huawei.

The about the arrest comes the same day Britain's said it was removing Huawei's equipment from the core of its existing and 4G mobile operations and would not use the Chinese company in central parts of the next network.

The handset and maker said it complies with all applicable export control and sanctions laws and U.S. and other regulations.

The Huawei statement said Meng was detained when she was transferring flights in

Her arrest drew a quick reaction in

U.S. Senator praised the action and said that it was "for breaking U.S. " He added: "Sometimes Chinese aggression is explicitly state-sponsored and sometimes it's laundered through many of Beijing's so-called 'private' sector entities."

U.S. stock futures and Asian shares tumbled as of the arrest heightened the sense a major collision was brewing between the world's two largest economic powers, not just over tariffs but also over technological hegemony.

While investors initially greeted the trade ceasefire that was agreed in with relief, the mood has quickly soured on skepticism that the two sides can reach a substantive deal.

S&P500 futures were down almost 2 percent at one point in thin Asian morning trade on Thursday.

(Reporting by Makini Brice; Additional reporting by in Vancouver and Diane Bartz in Washington; Writing by Chris Sanders; Editing by Sonya Hepinstall)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, December 06 2018. 08:18 IST
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