Canada court finds against Huawei CFO Meng Wanzhou on double criminality; extradition trial to continue
In a closely watched decision today, the Supreme court of the united states of British Columbia publicized a key decision in the deportation action of Meng Wanzhou, the CFO of Huawei Technologies, China’s largest telecommunications company and a frequent target of U.S. policymakers.
In its decree, the court said that the occasion meet service standards for “double criminality,” and thus the deportation hearing will be allowed to continue. That decision presents a major jolt to Huawei, which had hoped to end the suit and wreaking Meng home back to China.
It’s a pivotal moment in the long-running saga over the fate of Meng and Huawei itself. She was arrested at Vancouver International Airport on December 1, 2018 at the request of U.S. experts, who eventually indicted her and Huawei itself with a bevy of fraud blames.
Those charges stemmed from an investigation by the U.S. Department of Justice looking into Huawei’s ties with a number of affiliates, including Skycom Tech Co Ltd, which is alleged to have sold telecommunications equipment to Iran in violation of U.S. sanctions. Huawei employs American technology in its products, and under U.S. exportation principles, corporations are forbidden from transferring that technology to countries under sanction. Huawei has previously denied that it assured the companies, and has forcefully protected itself in the case.
Meng has been under house arrest in Vancouver for almost a year and a half pending deliberations of the Canadian fields. The bag has seen intense scrutiny from China, the U.S. and Canadian authorities, and has become a symbol of the continuing trade fight between the U.S. and China.
Today’s decision comes from a narrowly focused court hearing in January on a Canadian law creed known as “double criminality, ” which is to say that a theme needs to face criminal charges in both Canada and the receiving country in order for an extradition to be approved. While fields generally handle all aspects of extradition at once, the judge in this case, identify foreman justice Heather Holmes, decided to split Meng’s extradition hearing into stages, in recognition of the fact that without double criminality, the example would be automatically closed.
The decision on Meng, who is the daughter of Huawei’s founder and CEO Ren Zhengfei, is just one of many different engagements that Huawei has faced in recent months.
Over the weekend, the company faced a brand-new punch to its prospects in the West after the United Kingdom, which had been a lukewarm but steady follower of using Huawei’s equipment in its next-generation 5G structures, announced that it was reversing its decision and would wean itself off of Huawei equipment over the coming years.
Meanwhile in the U.S ., the Trump administration has focused intently on the company as it attempts to shift the balance of power in the United States’ trade relations with China. Two days ago, the Trump administration extended its technology export restrictions on Huawei, endangering the company’s ability to produce its chips and smartphones. TSMC, the world’s largest contract semiconductor fab, said that it wasn’t accepting new tells from Huawei in light of the new restrictions. At the same time, TSMC announced a massive, $12 billion manufacturing facility in Arizona.
While the Trump administration has constituted economic engagement with Huawei a programme priority, that strategy has not been endorsed by the entire federal government, with departments and agencies like the Department of Defense worried that the restrictions on export permissions could ultimately have deleterious, second-order effects on American industrial competitiveness.
Indeed, given the continuing situation with the U.S ., Huawei itself has said that one of its most important missions is to build its material exercising absolutely domestic Chinese components, straying around U.S. export governs and interrupting free of their restricts. Expediting on that front is China’s government itself, which has put up billions of dollars in new funding to build up its domestic chipmaking capabilities.
It’s a complex statu, and one that Western policymakers have struggled to come to a unified coming on. As our columnist Scott Bade described a few cases days ago, countries like Australia, the United Kingdom and the United Regime are struggling to come to agreement on Huawei and China’s tech forays more generally, with each country approaching the issue from its own point of view and from different levels of engagement with the Chinese mainland.
While the Meng case is just the latest salvo in the ongoing debate now, expect more spats ahead.
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