USA prosecutors want to extradite Ms Meng to face accusations that she misrepresented Huawei's relationship to a company that transacted business in Iran despite USA sanctions, according to evidence in a bail hearing today.
The governments of the UK, Australia and New Zealand have moved to prevent Huawei technology being used in their future 5G mobile phone networks, following a USA drive to stop its allies from purchasing from the company. While there is some fear that the arrest could hurt talks between the USA and China to end the current trade war between the two countries, Canadian prosecutors have called Ming a flight risk and have requested that the court place her in a detention center.
She is specifically accused of lying to USA banks about the use of a covert subsidiary to sell to Iran in breach of sanctions. SkyCom is believed to be an unofficial subsidiary of Huawei, though the companies do not claim to be connected.
She now faces extradition to the United States on suspicion of violating Washington's sanctions against Iran.
Huawei sold Skycom before the sanctions became law in the United States under president Barack Obama in 2010, he said.
Freeland said that Ambassador John McCallum has assured the Chinese foreign ministry that due process is being followed in Canada and consular access will be provided to Meng Wanzhou, the chief financial officer of Huawei Technologies. While unproven, the allegation was enough to take action against the company, including a ban on Huawei products in U.S. military bases in May.
He said that the daughter of Huawei founder Ren Zhengfei had substantial financial resources and was a flight risk. That information was passed on to federal prosecutors in the Eastern District of NY, the Journal report said.
Gibb-Carsley said the Attorney General opposes Meng's release on bail. Meng is accused to have previously insisted the two were separate companies.
Chinese state-run media said the arrest was part of U.S. efforts to curtail China´s tech industry.
It is within the context of the broader economic clash between two industrial powers, and the 90-day window allocated to resolve it, that Meng's arrest should be viewed, according to Marshall Mays, director of Emerging Alpha Advisors Limited.
A number of attendees said their companies were considering restricting non-essential China travel and looking to move meetings outside the country, one of the people added.
Following the arrest of Huawei's CFO in Canada, the UK's BT Group announced this week that it will remove Huawei equipment from existing networks and will not use the firm for 5G.
The case has emerged in the midst of USA moves against Chinese companies accused of stealing technology and Beijing's suspicion that Washington is trying to use politics to weaken China's continued growth.
"China has more incentive than the U.S.to stop the escalation", said Yanmei Xie, an analyst at the Gavekal Dragonomics consultancy in Beijing. Meng also faces possible extradition from Canada.
A recent article from the newspaper The Australian says that officials in Australia have received reports about Chinese spies using Huawei to infiltrate a "foreign network".
Meng, who also goes by the first name Sabrina, is one of four deputy chairs listed on the Huawei website and one of three women to sit on the Huawei board.