Shares plunge over Huawei arrest trade war concerns

Shares plunge over Huawei arrest trade war concerns

A spokesman for the USA justice department in the Eastern District of NY - which Huawei said had brought the charges - declined to comment.

US authorities have been probing Huawei since at least 2016 for allegedly shipping USA -origin products to Iran and other countries in violation of US export and sanctions laws, sources told Reuters in April.

Meng's bail hearing has been scheduled for Friday.

The British bank HSBC is cooperating with United States authorities in its investigation, people familiar with the matter said Thursday.

Canadian officials arrested Meng Wanzhou yesterday on orders from the USA, amid suspicions Huawei violated trade sanctions in place against Iran.

New Zealand and Australia have stopped telecom operators using Huawei's equipment in new 5G networks because they are concerned about possible Chinese government involvement in their communications infrastructure.

US National Security Adviser John Bolton has also said he knew about the arrest in advance.

The case showed that China is highly dependent on imports of US-made semiconductors or computer chips and reinforced Beijing's need to become self-reliant on this key technology. It said Huawei still is a supplier of other equipment and a "valued innovation partner".

"I believe that China's government will use maximum force to fight for freedom and justice for Meng Wanzhou".

The arrest comes just days after US President Donald Trump and Chinese leader Xi Jinping engaged in trade talks at the G20 summit, which most considered a positive development.

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The US State Department has for months classified China as an "increased caution" risk for American travelers, particularly businesspeople.

In addition to Trump's tariffs, the administration is tightening regulations on high-tech exports to China.

"The Chinese side has lodged stern representations with the United States and Canadian side, and urged them to immediately correct the wrongdoing and restore the personal freedom of Ms. Meng Wanzhou". Early in April, Reuters had reported that since at least 2016, the USA attorney's office in Brooklyn has been probing Huawei's alleged shipping of US -origin products to Iran and other countries in violation of US export and sanctions laws. But Trump issued a reprieve, possibly in part because United States tech companies are major suppliers of the Chinese giant and would also have been scorched. ZTE, whose Hong Kong-listed shares were suspended in April because of the ban and only resumed trading in July, was also forced to replace its board. The tech company said it complies with all laws and rules where it operates.

MSCI's benchmark for global stocks declined 0.61 percent, and US markets were on track to open lower by 1 percent or more. A 2012 report by the House Intelligence Committee report urged U.S. businesses to avoid their products and called for blocking all mergers or acquisitions involving them.

And almost a year ago, AT&T pulled out of a deal to sell Huawei smartphones. President Trump has agreed to postpone planned tariff hikes on Chinese goods, while China has pledged to purchase a "very substantial" amount of American produce and curb the export of deadly opioid Fentanyl to the U.S. in exchange. They urged him to keep Huawei off Canada's next- generation network. Personnel on USA military bases are banned from buying ZTE and Huawei equipment.

She has held several positions within the company.

In a statement to The Register, Huawei denied violating America's sanctions on Iran, and vowed to fight any charges against their chief financial officer. Beijing must develop innovative technologies to keep its economy growing as its labour force ages and it confronts a huge stockpile of debt.

Nonetheless, Canada could face political or economic retaliation.

Likewise, Rod Hunter, an global economic official in former president George W. Bush's White House and a partner at law firm Baker McKenzie, said, "I'm skeptical that the Chinese are going to want to say "uncle".

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