Huawei CFO arrested, facing US extradition for alleged Iran sanctions violation
At the request of the US government, Huawei CFO Wanzhou Meng was arrested in Vancouver on December 1st. According to the Globe and Mail, the arrest is related to Huawei’s violation of international sanctions on Iran. While the exact details of the violation are still being kept under wraps, the US is hoping to have Meng extradited to the US to face trial, but nothing will be decided until her bail hearing which is scheduled for December 7th.
Wanzhou Meng also serves as vice-chair of Huawei’s board and is the daughter of the company’s founder. Huawei has not released an official comment regarding Meng’s arrest, but we expect the company will have something to say following the bail hearing which will take place later this week.
While Huawei has been on an unprecedented growth trajectory for the past few years, the company has faced increased opposition from the US government. Multiple US security and intelligence agencies have issued warnings regarding the US of Huawei devices due to the company’s close ties to the Chinese government. It is still legal to buy and use Huawei products within the United States, but government workers have been banned from using them and US service providers are not able to use Huawei network equipment.
If Meng and Huawei are found to be guilty of violating sanctions against Iran, the US may slap Huawei with a steep fine and impose sanctions on the company, prohibiting it from purchasing products built from US companies. The outcome could be similar to what ZTE faced when convicted of violating sanctions against Iran.
Source: Globe and Mail