Huawei’s relationship with the U.S. just took a turn for the worse.
Several months after Donald Trump signed a bill into law preventing U.S. government agencies from buying certain products from the Chinese electronics manufacturer, Huawei’s CFO has been arrested in Canada. She now faces possible extradition to the U.S. This time around, however, the issue is not a potential national security risk, but rather accusations that CFO Wanzhou Meng violated U.S. sanctions regarding Iran.
According to the Globe and Mail, Meng was arrested in Vancouver on Dec. 1 and has a bail hearing on Dec. 7.
The arrest, while notable, did not come out of the blue. Reuters reported in April that U.S. authorities were investigating what has grown to be one of the world’s largest smartphone manufacturers for the “alleged shipping of U.S.-origin products to Iran and other countries in violation of U.S. export and sanctions laws.”
This arrest would appear to be an extension of that investigation, although details at this time are light.
Huawei released a statement, noting that it “has been provided very little information regarding the charges and is not aware of any wrongdoing by Ms Meng. The company believes the Canadian and US legal systems will ultimately reach a just conclusion.”
Huawei statement on arrest of CFO Meng Wanzhou in Canada: pic.twitter.com/l8YljoPadd
— Deirdre Bosa (@dee_bosa) December 5, 2018
The Wall Street Journal notes that U.S. authorities want to bring Meng to federal court in the Eastern District of New York.
In addition to serving as CFO, Meng is the daughter of Huawei founder Ren Zhengfei and is the deputy board chair.