Wanzhou Meng, vice president and CFO of Huawei, as well as daughter of Ren Zhengfei, founder of the Chinese telecommunications giant, was arrested on Wednesday in Canada. The manager faces an extradition request from the United States Department of Justice, the subject accusing the company of having sold high-tech products and services to Iran, a country subject to an embargo.
China has asked Canada to release Wanzhou. The hearing in which the judge will decide whether to release her on bail is scheduled for Friday.
Huawei, one of China's largest mobile phone manufacturers, has long been targeted by US authorities over security concerns: the purchase and use of Huawei mobile phones has been banned in government agencies.
However, Washington's new blitz has a particular weight, because it was decided in the aftermath of the talks in Buenos Aires between Donald Trump and Xi JingPing and threatens to shatter any possibility of an agreement on tariffs between the two superpowers.
Hence the reaction of the markets: the CSI 300 index of the Shanghai and Shenzhen stock markets falls by 1,7%. Hong Kong (-2,7%) and Taipei (-2,4%) are doing worse. The Nikkei of Tokyo (-2,2%) and the Kospi of Seoul (-1,8%) also fell sharply.
The yen, safe haven currency for Asia, appreciated against the dollar at 112,6. China's yuan weakens: cross against the dollar to 6,87 from 6,83.
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Huawei, with regard to the arrest of the CFO Meng Wanzhou, specified that "on the occasion of one of his business trips, it was provisionally detained by the Canadian authorities on behalf of the United States of America - which are requesting its extradition - to facing unspecified allegations from the Eastern District of New York.”
The company was provided with "little information about the allegations" and the company "is not aware of any wrongdoing by Ms. Meng".
Huawei says it “complies with all laws and regulations of the countries in which it operates, including export control laws from the United Nations, the United States and the EU. We are confident that the Canadian and US authorities will undoubtedly reach a fair and impartial conclusion."
