Arrest of Huawei CFO; China Summons US Ambassador

Following the events surrounding the arrest of Huawei's CFO in Canada related to violations of sanctions against Iran, China summoned the US ambassador in Beijing and demanded the withdrawal of the extradition request and the release of Meng Wanzhou. Meng Wanzhou was arrested on December 1 at the request of the United States. She faces charges of fraud and attempting to circumvent US sanctions against Iran. Meng's lawyer claims she is accused of lying to HSBC regarding the use of a hidden subsidiary to conduct business with Iran in violation of sanctions against the country. On the other hand, a spokesperson for the Chinese Foreign Ministry stated that the US and Canada have provided 'no evidence' of any violation of laws by Meng. The state news agency Xinhua reported on December 19 that Le Yucheng, the Chinese Deputy Foreign Minister, summoned US Ambassador Terry Branstad and 'strongly' protested Meng's arrest. According to Mr. Le, the US has 'seriously violated the legitimate rights and interests of a Chinese citizen.' The Chinese Foreign Ministry has demanded that the US 'cancel the arrest warrant for Meng Wanzhou.' Beijing added that it would respond to any further actions by the US. The US State Department has not yet reacted to this incident. Reuters noted that the investigations into the potential transfer of US technology by Huawei to Iran and other sanctioned countries date back at least to 2016. Robert Lighthizer, the US Trade Representative, recently told CBS News that the arrest of the senior Huawei official is a 'judicial matter' and is 'completely separate from what government officials are doing in trade policy.' Two days prior, China had summoned the Canadian ambassador to describe Meng's arrest as 'unconscionable' and warned that if this senior executive of the Chinese tech giant is not released, Canada would face 'serious consequences.' On Sunday, the province of British Columbia in Canada announced that it had canceled an economic delegation's trip to China due to Meng's arrest. The Associated Press reported that the cancellation of this trip was likely due to concerns over potential retaliatory actions from China and the possible detention of Canadian citizens. Meng Wanzhou's arrest has heightened concerns about a potential escalation in the trade war between China and the US. However, Mr. Lighthizer does not see this likelihood as very severe. He stated on CBS's 'Face the Nation' that he does not believe economic policymaking will be affected by this incident. The day Meng was arrested was also the day that Xi Jinping and Donald Trump reached agreements in Argentina that the media described as a 'trade truce.' The two leaders agreed to a 90-day suspension of new tariffs to continue trade negotiations. However, this 'truce' is now facing doubts. Reports indicate that financial markets in Asia opened on Monday with a drop in stock values and negative repercussions stemming from new concerns. The French news agency pointed out the US-China disputes, the crisis stemming from the arrest of Huawei's CFO, new signs of a downturn in the economic situation in China and the US, and the issue of Britain's exit from the European Union as factors affecting market conditions.