Hostage To Trade War? Huawei CFO Meng Wanzhou Detained, May Face US Charges For Violating Iran Sanctions

Chief financial officer (CFO) of Huawei Technologies Meng Wanzhou has been detained by Canadian authorities at the behest of the US government while changing flights in Vancouver. Meng is also the daughter of Huawei founder Ren Zhengfei and she sits on the the company’s Board of Directors as deputy chairperson, reported The Economic Times.

According to a statement released by Huawei, Meng will be facing ‘unspecified charges’ in New York. The company denied knowledge of any wrongdoing by Meng, adding that it had received sparse information on the nature of the proceedings against her.

Earlier this year the Wall Street Journal had reported that American authorities were investigating Huawei for allegedly violating the Trump sanctions on Iran.

China has reacted strongly against the detention, with the Chinese Embassy in Ottawa releasing a statement saying, “The Chinese side firmly opposes and strongly protests over such kind of actions which seriously harmed the human rights of the victim.''

The detention of Meng marks the latest escalation in the ongoing trade tensions between the US and China. Trump has come down heavily on China for using pressure tactics to force foreign companies to share their technology with Chinese firms, as well as the practice of erecting trade barriers for foreign companies in the Chinese market.

According to former Canadian ambassador to China David Mulroney, Canada may now face China’s wrath as it will be portrayed as acting in deference to the Trump administration.