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Huawei CFO arrested in Canada for violating US sanction, faces extradition

Meng Wanzhou, who is one of the vice chairman company's board is also the daughter of company founder Ren Zhengfei w


Photo: Reuters

has arrested 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 US sanctions, a person familiar with the matter said. was unable to determine the precise nature of the violations.

Meng Wanzhou, who is one of the vice chairs on the Chinese 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 against Meng, 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 brewing trade war.

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

The US Justice Department probe is being run out of the US attorney's office in Brooklyn, the sources said.

The US Justice Department declined to comment. A for the US attorney's office in Brooklyn also declined to comment.

In January 2013, reported that a Hong Kong-based firm that attempted to sell embargoed computer equipment to Iran's largest had much closer ties to China's Technologies than was previously known.

The news 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 statement said Meng, who also has gone by the English names and Sabrina, was detained when she was transferring flights in

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

The arrest drew a quick reaction in

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

US stock futures tumbled, followed by Asian markets, as news 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 reached in with relief, the mood has quickly soured on scepticism that the two sides can reach a substantive deal.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Thu, December 06 2018. 06:21 IST