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Below is a summary in bullet point of news we know about the arrest of Huawei’s CFO as reported by multiple sources:
- Who is Meng Wangzhou?
- 46 year-old global CFO of Huawei
- Daughter of Huawei founder.
- She faces extradition to the US.
- She also goes by Cathy or Sabrina
- When was the arrest?
- December 1, 2018
- The arrest warrant was issued on August 22nd.
- Where did they arrest the CFO?
- The arrest took place in Vancouver’s airport as she traveled from Hong Kong to Mexico.
- Why did they arrest the CFO?
- The arrest stems from 2013 statements made by Meng Wanzhou. In 2013, she told financial institutions Huawei had no connection to a Hong-Kong based company called Skycom.
- Why is Skycom Tech Co. Ltd. under investigation by the US?
- Skycom is suspected of selling Hewlett-Packard computer equipment to Iran’s largest mobile-phone operator.
- There is an embargo in place and selling HP equipment to Iran is in violation of US sanctions.
- Meng’s lawyer claims Huawei already divested itself from Skycom and left the Skycom board.
- US authorities also believe Huawei operated Skycom as an “unofficial subsidiary” to conduct business in Iran.
- Meng previously served on the board of Skycom from February 2008- April 2009 according to Skycom filings with Hong Kong’s Companies Registry.
- Several past Skycom directors may also have connections to Huawei.
- Tell me more about the court case?
- Eastern District of New York.
- US authorities will like allege Meng played a role in fraud by telling banks there was no link between Huawei and Skycom.
- Why arrest the CFO in Canada?
- The US does not have an extradition treaty with China
- Canadian authorities consider her a flight risk because of her wealth.
- What is China’s response?
- The Chinese government has demanded Meng’s immediate release.
- China has asked Ottawa and Washington to clarify their reasons for the detention.
- The arrest has sparked anger on Chinese social media with users calling for boycott of US goods.
- Who is Huawei?
- Huawei was founded in 1987 by Zhengfei Ren, a prominent business figure in China.
- Huawei is the world’s second-largest maker of smartphones (behind Samsung) and one of the world’s largest makers of telecommunication equipment.
- Huawei and ZTE are considered by some US officials as a threat to national security due to the potential for spying on US companies or agencies that use their equipment.
Check back for more news as they develop.