What is Huawei? Chinese tech firm under microscope after CFO's arrest

What is Huawei? Chinese tech firm under microscope after CFO's arrest

The Justice Department says the chief financial officer of China's Huawei Technologies, who is sought for extradition by the United States, has been arrested in Vancouver.

News of Meng's arrest comes in the wake of reports in April of 2018 that US prosecutors based in NY were investigating the possible violation of USA sanctions against selling USA -origin products to Iran.

News of Meng's arrest provoked an immediate protest from the Chinese embassy in Canada, demanding the US and its neighbor "rectify wrongdoings" and free Meng.

Her arrest is sure to heighten tensions between Washington and Beijing days after the world's two largest economies agreed on a truce in their growing trade conflict.

Shares of Huawei suppliers slumped on Thursday as investors fretted over the arrest. "It's a prominent member of their society and it's a company that really embodies China's quest for global recognition as a technology power".

Its ambitions range from artificial intelligence and chipmaking to fifth-generation wireless. Under U.S. President Donald Trump and his predecessor, Barack Obama, Washington has pressured European countries and other allies to limit the use of its technology.

"These tactics could effectively create a duopoly in the Western markets for Ericsson and Nokia for 5G", said Neil Campling, co-head of the global thematic group at Mirabaud Securities.

Geng said the USA and Canada haven't provided reasons for Meng's detention.

Huawei Chief Financial Officer Meng Wanzhou was arrested before catching a connecting flight through Vancouver International on Saturday. USA national Security officials were aware of the arrest prior to the news breaking Wednesday evening, a different source said. A spokeswoman for Canadian Prime Minister Justin Trudeau referred questions to the country's justice department.

"This headline is quite significant as the United States government is attempting to persuade allies to stop using Huawei equipment due to security fears", said Stephen Innes, head of Asia-Pacific trade at OANDA.

Markets had initially brightened after US and Chinese leaders agreed a temporary trade truce at a meeting on Saturday.

'The Canadian police, at the request of the United States, arrested a Chinese citizen who had not violated any USA or Canadian law, ' the embassy said in a short statement on its website.

"The company has been provided very little information regarding the charges and is not aware of any wrongdoing by Ms. Meng", the statement said.

"At the request of the US side, the Canadian side arrested a Chinese citizen not violating any American or Canadian law", the Chinese Embassy in Canada said on Thursday.

Thus, the arrest of Meng - which apparently had been planned through coordination by both Canadian and USA authorities - was seen by many hawkish Chinese analysts as a sign that the US government does not really intend to suspend aggressive actions against China.

Lenovo has also come under attack in the USA for allegedly selling compromised computers that expose users to spying. Australia and New Zealand recently banned Huawei from building 5G networks in their countries.

Huawei's biggest Chinese rival, ZTE Corp., was almost driven out of business this year when Washington barred it from buying U.S. technology over exports to North Korea and Iran.

Benchmark U.S. crude slid 2.9 percent to $51.38 a barrel in NY.

Various reports indicated that this could be related to violations of United States sanctions on Iran. "That could include tit for tat moves against Canadians", he said. Still, the company's phone business is successful.

An executive with a US-based multinational company, meanwhile, said the incident may not be part of Trump's tactics. Huawei has also been taking heat in other markets.