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Huawei CFO to appear in Canada court in U.S. extradition case

Reuters  |  VANCOUVER/TORONTO 

By and Anna Paperny

VANCOUVER/TORONTO (Reuters) - A top of China's who is under arrest in is set to appear in a court on Friday for a bail hearing as she awaits possible extradition to the

Huawei Meng Wanzhou, 46, who is also the daughter of the company founder, was arrested on Dec. 1 at the request of the The arrest, revealed by Canadian authorities late on Wednesday, was part of a U.S. investigation into an alleged scheme to use the global system to evade U.S. sanctions against Iran, people familiar with the probe told

The roiled global stock markets on fears the move could escalate a trade war between the and after a truce was agreed on Saturday between and in

Trump did not know about the arrest in advance, two U.S. officials said on Thursday, in an apparent attempt to stop the incident from impeding talks to resolve the trade dispute.

Details of the case against Meng, to be heard in the of British Columbia, remain sparse.

Canada's Justice Department has declined to provide details of the case and Meng has secured a publication ban, which curbs the media's ability to report on the evidence or documents presented in court.

The bail hearing could be just a preliminary session to set out a schedule, lawyers said.

The is expected to argue that Meng poses a flight risk and should be kept in a detention facility, legal experts said. The onus will be on Meng's to provide evidence that she will not flee, they added.

Huawei, which has confirmed Meng was arrested, said on Wednesday that "the company has been provided very little information regarding the charges and is not aware of any wrongdoing by Ms. Meng."

A Huawei declined to comment on Thursday and said that Wednesday's statement still stands.

LONG FIGHT

If granted bail, Meng will likely have to post bail with "a surety of several million dollars", Gary Botting, who has experience with extradition cases, said. She would also have to give up her passport, he said.

Meng could also be fitted with electronic monitoring equipment, and the court could go so far as to order security to monitor her while she awaits a decision on extradition, lawyers said.

If Meng fights extradition, her case could go on for years, lawyers said, pointing to examples like Lai Changxing, a Chinese who fled to after he was implicated in a bribery case and fought extradition to for 12 years. If she chooses not to fight, she could be in the United States within weeks, experts said.

"You need massive material and evidence to support detention release," said Richard Kurland, a Vancouver-based He said Meng would likely be returned to detention if there was no decision on bail.

It is unclear where Meng is being held in Several lawyers have noted that detention facilities in the region are spartan and she would likely be sharing her quarters with other inmates.

Huawei, which employs about 1,000 people in Canada, faces intense scrutiny from many Western nations over its ties to the Chinese government, driven by concerns it could be used by for spying.

The United States has also been looking since at least 2016 into whether Huawei violated U.S. sanctions against Iran, reported in April.

More recently, the probe has included the company's use of to make illegal transactions involving Iran, people familiar with the investigation said. HSBC is not under investigation, according to a person familiar with the matter.

Huawei has said it complies with all applicable export control and sanctions laws and other regulations.

(Reporting by in Vancouver and Anna Paperny in Toronto; Additional reporting by in Ottawa; Editing by and Sonya Hepinstall)

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

First Published: Fri, December 07 2018. 11:32 IST
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