Huawei executive Meng Wanzhou rejects USA claims of ties to Iran

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Chinese telecom giant Huawei's chief financial officer, arrested in Canada, faces U.S. fraud charges for allegedly lying to banks about the use of a covert subsidiary to sell to Iran in breach of sanctions, a bail hearing heard Friday.

Chinese foreign ministry spokesman Geng Shuang said on Friday that neither Canada nor the USA had provided China any evidence that Meng had broken any law in those two countries, and reiterated Beijing's demand that she be released.

He says the charges Meng is facing in the USA have to do with Huawei using an unofficial subsidiary to access the Iran market in dealings that would contravene US sanctions.

None of the allegations have been proven in court.

The Attorney General opposed Meng's release on bail.

Ltd., is accused of fraud offenses and faces an extradition request from the US, a bail hearing was told.

He said Meng's own personal integrity would not allow her to go against a court order, and that she would not embarrass her father, company founder Ren Zhengfei, by breaching such an order.

Russian Foreign Minister Sergei Lavrov said on Friday that the detention of Chinese technology giant Huawei's HWT.UL chief financial officer in Canada was an example of "arrogant" US policy overseas.

Meng, 46, was initially granted a publication ban by the B.C. Supreme Court, which was subsequently lifted ahead of her hearing.

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The case has emerged in the midst of United States 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.

The chief financial officer of Huawei could face charges of fraud to evade United States sanctions on Iran.

Asked this week about a possible Canadian ban on Huawei, Trudeau said he would defer to the advice of his intelligence agencies.

For now, the Huawei executive will remain in Canada. Moreover, US authorities believe that Huawei's top managers began avoiding travel to the US around April 2017 after becoming aware of the US criminal probe. However, the court heard from a crown lawyer that Huawei controls Skycom.

In a statement earlier this week, Huawei said the company complies with all laws and regulations in the countries where it operates, including applicable export control, sanction laws and regulations of the United Nations, the United States and the European Union. Prosecutors claim that she is a flight risk due to her family's vast wealth, while the defense points out that Meng has resided with her husband and children in Vancouver for years, and had obtained permanent residence status.

Mr. Trudeau and US national-security adviser John Bolton have said they both knew of the arrest plans in advance. "Huawei is one company that we've been concerned about".

For a period of time she was in charge of Huawei's successful internationalization efforts. Crown prosecutors argue Meng violated section 380 of Canada's criminal code, which pertains to fraud.

Huawei staff briefed on an internal memo told Reuters on Friday the company had appointed Chairman Liang Hua as acting CFO following Meng's arrest.

"The threat from these companies lies in their access to critical internet backbone infrastructure", she said.

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