VANCOUVER — China raised the pressure on the United States and Canada as a bail hearing for a top Chinese technology executive was set to resume Monday in Vancouver, British Columbia.
Meng Wanzhou, the chief financial officer of telecommunications giant Huawei and daughter of its founder, was detained at the request of the U.S. during a layover at the Vancouver airport on Dec. 1 — the same day that Presidents Donald Trump and Xi Jinping of China agreed over dinner to a 90-day ceasefire in a trade dispute that threatens to disrupt global commerce.
China formally protested to the ambassadors of both Canada and the United States over the weekend.
The U.S. alleges that Huawei used a Hong Kong shell company to sell equipment in Iran in violation of U.S. sanctions. It also says that Meng and Huawei misled American banks about its business dealings in Iran.
Her arrest could fuel U.S.-China trade tensions at a time when the two sides are seeking to resolve a dispute over Beijing's technology and industrial strategy. Both sides have sought to keep the issues separate, at least so far. The arrest has roiled markets.
Her bail hearing was due to resume later Monday. Canadian prosecutor John Gibb-Carsley asked the court Friday to reject Meng's bail request. Justice William Ehrcke said he would think about proposed bail conditions over the weekend.
China's Vice Foreign Minister Le Yucheng summoned Canadian Ambassador John McCallum on Saturday and American Ambassador Terry Branstad on Sunday.
Le warned both countries that Beijing will take steps based on their response. Asked Monday what those steps might be, Chinese Foreign Ministry spokesman Lu Kang said only that "it totally depends on the Canadian side itself."
The Canadian province of British Columbia has already cancelled a trade mission to China amid fears China could detain Canadians in retaliation for Meng's detention.
Commercial retaliation against firms from countries at odds with China has grown increasingly common as Beijing exercises its leverage as the world's second-largest economy.
Such movements are almost certainly countenanced by the ruling Communist Party. The government doesn't confirm its role to avoid damaging its image as a champion of free trade.
Huawei, the biggest global supplier of network gear for phone and internet companies, has become the target of U.S. security concerns because of its ties to the Chinese government. The U.S. has pressured other countries to limit use of its technology, warning they could be opening themselves up to surveillance and theft of information.
Lu, the Foreign Ministry spokesman, accused unnamed countries of hyping the "so-called" threat. "I must tell you that not a single piece of evidence have they ever presented to back their allegation," he said. "To create obstacles for companies' normal operations based on speculation is quite absurd."
Canadian officials have declined to comment on Chinese threats of retaliation, instead emphasizing the independence of Canada's judiciary and the importance of Ottawa's relationship with Beijing.
While protesting what it calls Canada's violation of Meng's human rights, the Communist Party is regularly accused by outsiders of rights violations at home. They include the widespread internment of Muslims in restive regions without due process to refusing to allow citizens of other countries to leave China to pressure their Chinese relatives living overseas and accused of financial crimes.
The Latest: Break-In At Home Of Detained Chinese Executive
VANCOUVER — The Latest on the arrest in Canada of Chinese tech executive Meng Wanzhou. (all times local):
8:55 a.m.
There was a break-in at the Vancouver home of a tech executive from China who is being detained at the request of the United States.
Vancouver police say they received a 911 call about the intrusion just before 5:30 a.m. Sunday, but that the suspects fled the area after being challenged by someone in the house.
A defence lawyer for Meng Wanzhou, the chief financial officer for Huawei and the daughter of its founder, said at a bail hearing that Meng and her husband purchased the home in 2009. Land title documents show the registered owner is Xiaozong Liu and B.C. Assessment says the property is valued at $5.6 million Canadian ($4.1 million).
A bail hearing for Meng continues in Vancouver on Monday with the United States seeking her extradition on fraud allegations. She lives in China but is a former permanent resident of Canada.
10:10 a.m.
China says there is no evidence to back up claims in the West that Huawei (WAH-way) and other Chinese tech companies pose a security threat.
Foreign Ministry spokesman Lu Kang said Monday that other countries are hyping up security threats to create obstacles for Chinese companies trying to do legitimate business.
His comments come shortly before Huawei executive Meng Wanzhou (MUHNG' Wahn-JOH') was due in court in Canada for a resumption of her bail hearing.
The U.S. alleges Huawei used a Hong Kong shell company to evade U.S. trade curbs on Iran and wants Meng extradited. She was detained on Dec. 1 while changing planes in Vancouver.
Fast Facts About The Arrest Of A Chinese Tech Executive
VANCOUVER — WHAT'S HAPPENING
A top executive with Chinese electronics giant Huawei faces a bail hearing. The U.S. wants Canada to extradite Meng Wanzhou, the chief financial officer of Huawei Technologies. She was detained Dec. 1 while changing planes in Vancouver. U.S. authorities allege Huawei used a Hong Kong shell company to evade U.S. trade curbs on Iran.
China is pressuring both the U.S. and Canada over her arrest. Their ambassadors in Beijing were summoned by the Chinese government over the weekend, and an editorial in China's Communist Party newspaper called her treatment "inhumane."
WHY HUAWEI?
Huawei is the biggest global supplier of network gear for phone and internet companies. It has become the target of U.S. security concerns because of its ties to the Chinese government. The U.S. has pressured other countries to limit use of its technology, warning they could be opening themselves up to surveillance and theft of information. The U.S. sees Huawei and smaller Chinese tech suppliers as possible fronts for spying and as commercial competitors.
WHAT'S NEXT
The hearing on whether to release Meng on bail started Friday and will resume Monday. Canadian prosecutor John Gibb-Carsley asked the court to reject Meng's bail request and Justice William Ehrcke said he would think about proposed bail conditions over the weekend. China's vice foreign minister demanded that Meng's arrest warrant be vacated and warned both Canada and the U.S. that Beijing will take steps based on their responses.
Officials did not specify what those steps might be, but British Columbia has already cancelled a trade mission to China amid fears China could detain Canadians in retaliation. Retaliation against U.S. or Canadian businesses in China is also possible. Huawei said in a statement that "We have every confidence that the Canadian and U.S. legal systems will reach the right conclusion."
THE BACKDROP
The arrest took place as China and the U.S., the world's two largest economies, try to resolve escalating trade tensions. President Donald Trump has agreed to postpone U.S. tariff increases for 90 days while the two sides negotiate. China and the U.S. say Meng's arrest will not affect trade talks.
