Huawei CFO arrested in Canada for violating Iran sanctions

ISLAMABAD (MEDIA REPORT)

China-based equipment maker Huawei faced another huge setback this week following the arrest of its CFO, the daughter of company founder Ren Zhengfei, in Vancouver on suspicion of violating trade sanctions imposed on Iran by the US.

Meng Wanzhou, who is also the vendor’s deputy chair, was arrested on 1 December and faces extradition to the US. Canada’s ministry of justice confirmed the arrest, adding: “She is sought for extradition by the US and a bail hearing has been set for Friday,” BBC News reported.

Few details of her detention were available, except that she was arrested when transferring flights in Canada. China’s embassy demanded her release.

Huawei confirmed to the media Meng was provisionally detained by the Canadian authorities on behalf of the US, which seeks the extradition to face unspecified charges in the Eastern District of New York.

In a statement, it explained: “The company has been provided very little information regarding the charges and is not aware of any wrongdoing by Meng. The company believes the Canadian and US legal systems will ultimately reach a just conclusion.”

Huawei added that it “complies with all applicable laws and regulations where it operates, including applicable export control and sanction laws, and regulations of the UN, US and EU”.

The arrest and any potential sanctions on the world’s second biggest smartphone maker could have major repercussions on the global technology supply chain. Shares in Asian suppliers to Huawei, which also counts Qualcomm and Intel among its major suppliers, tumbled on Thursday.