Canada vs. China, & Huawei

[Randy W]

This is an ongoing topic - click here for Most Recent Post

from the SCMP on Facebook - https://www.facebook.com/scmp/videos/458320581238822/

Huawei's CFO arrested

South China Morning Post

Quote

Huawei's CFO Sabrina Meng Wanzhou, daughter of the company's founder, has been arrested in Canada at the request of the US government.

 

 

https://www.facebook.com/scmp/videos/458320581238822/

China demands clarity from US and Canada over arrest of Huawei CFO ‘for violating US sanctions on Iran’

 

• Sabrina Meng Wanzhou was arrested in Vancouver on December 1, reportedly for violating US trade sanctions against Iran
• The US is seeking her extradition, and a bail hearing has been set for Friday

Edited March 18, 2021 by Randy W (see edit history)

[Randy W]

Perhaps a dangerous precedent to set, considering the U.S. executives who are in China or who may be traveling there in the future

 

from the SCMP

 

MENG WANZHOU ARREST: WHAT IF CHINA WENT AFTER US EXECUTIVES?

• Isn’t it ironic: the US accuses China of undermining international norms, yet appears to be okay with arresting the Huawei executive without producing a shred of evidence and using her as leverage in trade war negotiations

BY WANG XIANGWEI

8 DEC 2018

 

The timing of her arrest is more than an insulting poke in the eye for the Chinese government, particularly after US national security adviser John Bolton confirmed on Thursday that he was aware of the plan to arrest Meng going into the December 1 meeting between Xi and Trump. In the same interview, he also said Huawei, and other Chinese tech giants, would be a “major subject” of discussion between US and Chinese trade negotiators because of their alleged practices of using stolen US technology.

His remarks are likely to strengthen the argument in China that her arrest was politically motivated, and China hawks in the White House including Bolton are using Meng’s arrest as leverage in negotiations with the Chinese.

If this were the case, it would backfire against the US, big time.

. . .

It is highly ironic that while the US goes around accusing China of being a bad actor undermining international norms, it uses its long-arm jurisdiction and mighty financial system to ensnare foreign nationals for its own purposes. All this is done without presenting any shred of evidence beforehand, a clear sign of American hegemony if nothing else.

 

 

 

. . . and this

 

Huawei CFO Sabrina Meng Wanzhou fraudulently represented company to skirt US and EU sanctions on Iran, court told in bail hearing

• Chinese telecoms giant used an unofficial subsidiary, Skycom, to deal with Iran and Meng deliberately misrepresented the two companies as wholly separate, the court heard
• She faces multiple charges, each with a sentence of up to 30 years in prison, so is a flight risk, a Canadian lawyer said. The hearing will continue on Monday

Ian Young

Updated: Saturday, 8 Dec, 2018 2:28pm

Edited December 8, 2018 by Randy W (see edit history)

[amberjack1234]

I hate to see this and what the results may lead too. Seems like relations between the US and China are deteriorating daily. The wife says that China has taken advantage of the US so long that now it is a "face" thing for Trump to be slapping their hand. Plus China has gotten so big now they think they are beyond a slap on the hand by the US or anyone else.

[Randy W]

I hate to see this and what the results may lead too. Seems like relations between the US and China are deteriorating daily. The wife says that China has taken advantage of the US so long that now it is a "face" thing for Trump to be slapping their hand. Plus China has gotten so big now they think they are beyond a slap on the hand by the US or anyone else.

 

I am hoping that Xi Jinping DOESN'T run for re-election in 2022 - no, he WASN'T elected "President for life". They still have 5 year terms - he WILL be eligible to run again in 2022.

[amberjack1234]

Yep, you are right but I don't see that happening because he has been silently making himself commander n chief of every organization that is of any importance in the country. He has been doing that for a reason.

[Randy W]

Yep, you are right but I don't see that happening because he has been silently making himself commander n chief of every organization that is of any importance in the country. He has been doing that for a reason.

 

 

But the age factor - he'll be pretty well up there at 69 in 2022 - and the realization that they MAY need someone else - leave a little bit of hope, no matter HOW slim.

 

I hadn't realized he's actually a year younger than me.

[Randy W]

Back to Sabrina here - this sounds especially ominous, since China has many ways to interpret what they see as threats to their social stability. From Reuters


China calls on Canada to free Huawei CFO or face consequences

China warned Canada on Saturday that there would be severe consequences if it did not immediately release Huawei Technologies Co Ltd’s [HWT.UL] chief financial officer, calling the case “extremely nasty.”

 

. . .

 

In a short statement, China’s Foreign Ministry said that Vice Foreign Minister Le Yucheng had issued the warning to release Meng to Canada’s ambassador in Beijing, summoning him to lodge a “strong protest.”

 

. . .

 

When asked about the possible Chinese backlash after the arrest of Huawei’s CFO, Prime Minister Justin Trudeau told reporters on Friday that Canada has a very good relationship with Beijing.

 

 

from the NY Times

 

China Warns Canada of ‘Heavy Price’ Over Huawei Arrest

 

In an editorial published Sunday, the People’s Daily newspaper warned of “serious consequences” should the Canadian authorities fail to immediately release Ms. Meng, the chief financial officer of the Chinese electronics giant and daughter of its founder.

“By convicting her without trial, the Canadian police have completely disregarded the spirit of the law,” the editorial said. “Is this the way a civilized country should act? How can it not make people furious?”

It concluded: “Only by correcting its mistake, immediately ending its violation of a Chinese citizen’s lawful and legitimate rights and giving the Chinese people a due explanation can Canada avoid paying a heavy price.”

 

 

Edited December 9, 2018 by Randy W (see edit history)

[Randy W]

from the SCMP

 

Former Canadian diplomat Michael Kovrig detained in China after arrest of Huawei CFO Sabrina Meng Wanzhou in Canada

• Move comes after police in Canada arrested Sabrina Meng Wanzhou, the CFO of China’s Huawei Technologies, on December 1 at the request of US authorities
• It’s not yet clear what reasons have been given for Kovrig’s detention

A former Canadian diplomat has been detained in China while a Canadian court weighs whether to grant bail to a top Chinese technology executive who is being held in Vancouver pending a US extradition request.

The International Crisis Group confirmed in a statement on Tuesday that it was “aware of reports that its North East Asia Senior Adviser, Michael Kovrig, has been detained in China”.

 

 

[amberjack1234]

I think that we all saw that one coming.

[Randy W]

from the SCMP

 

China confirms second Canadian Michael Spavor under investigation for allegedly endangering national security

• Businessman has been missing since he last made contact with Canadian officials
• Fellow Canadian in China Michael Kovrig detained for allegedly endangering national security
• Spavor, who is based in China, runs an organisation that facilitates business, tourism and sport trips to North Korea

 

Kim Jong-un and missing Canadian Michael Spavor sharing cocktails on board the North Korean leader's private yacht in September 2013. Photo: Handout

 

The investigation was related to “activities that endanger China’s national security”, the report said.

The report came after Canada’s Foreign Ministry said it had been unable to contact Canadian businessman Spavor since he notified the government that he was being questioned by Chinese authorities.

 

 

[Randy W]

Dan Harris of ChinaLawBlog summarizes the Korvig case in this article

 

What to Do if You are Arrested in China

By Dan Harris on December 12, 2018

 

This New York Times article, China Says Detained Canadian Worked for Group Without Legal Registration, states that Mr. Korvig has been detained because the organization for which he works was not properly registered. Not a big surprise. Earlier this week, in How to Avoid Being Detained in China, I listed out the following seven things to do to avoid arrest in China:

If you are doing business in China without a Chinese company (and by China, I most emphatically do not mean a Hong Kong or a Taiwan company), you had better be damn sure you do not need a company, especially since the odds are that you do. Doing Business in China Without a WFOE: Will the Defendant Please Rise.

It means paying whatever taxes you or your company might owe. See China Taxes, Getting Legal, and Some Good News.

It means having your visa and the visas of all of your employees in good order. See China Visa FAQs.

It means not deciding you are operating legally in China based on some crap you’ve read on the Internet that feeds into your desire to believe that you are. See China Law Online: It’s All Wrong.

It means protecting your company from your China employees because the odds are good it will be one of your China employees who leads to your downfall either by reporting you to the authorities or by suing you and thereby exposing something you are doing that you should not be doing. Trust us on this one. Please. See China Employer Audits: The FAQs.

It means that if you are not 99.99% certain you are operating in China completely legally you either immediately do something to change that or you immediately leave the country and you take all of your foreign employees with you. And if for some reason you don’t care about one or more of your foreign employees getting into big trouble in China, note that people who go to jail for something that their company do have a tendency to sue their company.

If you are in a dispute with anyone in China regarding money, you should consider paying it and getting a valid and legally sound release in Chinese making clear that you paid it. See Maybe Owe Money To China? Don’t Go There. Or you should consider immediately leaving China.

Note how many of these things may apply to Mr. Korvig, if the New York Times is accurate as to his detention “Wait a second,” you may be saying. Do you really believe Mr. Korvig was detained for some alleged corporate violation of his company and not because he is Canadian and, more importantly, an ex-diplomat. I believe it is probably a combination of these things. China could no doubt have legally justified the detention of at least hundreds of Canadians but it chose this particular person, probably because he is a former diplomat and his detention sends a clear message to Canada. I called the reporter back this morning with this new assessment.

 

 

[Bert]

I hear that three Canadian executives have been arrested now.

 

"If you are in a dispute with anyone in China regarding money, you should consider paying it and getting a valid and legally sound release in Chinese making clear that you paid it. See Maybe Owe Money To China? Don’t Go There. Or you should consider immediately leaving China."

 

That's the one I worry about. I don't remember the name of the hospital anymore, but it is the most expensive expat oriented hospital in Shanghai. My wife was mistreated by a physical therapist there. It became a family affair. They agreed to treat her for free. But, my wife wasn't satisfied with the limitations. Then, after the treatments, they reneged. Her family created such a scene, that they decided to settle with her, agreeing to pay her 30,000 RMB. But, as part of the agreement, they would make a claim on the insurance company. If they paid, they paid. If they didn't, they didn't. It wasn't her problem if they didn't pay. Under my company's insurance paid, she was covered for three months after I left. For eight months, she was covered, but I would have to reimburse the company. I told her not to go, but she called the insurance company and they told her no problem. She went anyway. She was in that eight-month period. The insurance company must have paid something. Fast forward two and a half years and we get a bill by email from the hospital. We ignored it. It was a couple thousand RMB.

 

The second issue is that since my wife received her green card, she thinks she has free speech. Much of her junk on WeChat gets deleted by the censors. She made derogatory comments about the Dear Leader to her mother. No doubt the government monitors WeChat. She may have a green card, but she is still a Chinese Citizen.

[Randy W]

The third one is an ordinary Canadian citizen working in China




Canadian Sarah McIver given ‘administrative punishment’ for working illegally in China

• China says it will provide ‘necessary assistance for Canada to perform its consular duties’ so teacher can return home

China’s foreign ministry spokeswoman Hua Chunying told a regular press briefing that a Canadian citizen had been “administratively punished” by local police for illegal employment.




“There is unimpeded consular communication between China and Canada, and China will provide necessary assistance for Canada to perform its consular duties normally,” she said.
Canadian newspaper National Post reported on Wednesday that arrangements were being made for McIver, originally from Alberta, to return to Canada after she was detained over a visa irregularity.

[Randy W]

A comparison of the cases from Inkstone

 

The US case against a tech exec is stronger than China’s retaliation

 

But, according to Julian Ku, writing for the Lawfare blog, Meng is likely to be charged with violating the US bank fraud statute. She is alleged to have tricked HSBC into processing Huawei’s transactions, when she denied that the telecom giant was connected to Skycom Tech, a Hong Kong company trying to sell US technology to Iran.

She is alleged to have put the bank in legal jeopardy because financial institutions operating in the US are subject to US sanctions on Iran. Thus, the case involves an offense allegedly committed by her, not the company.

On the other hand, China’s detention of Canadians Michael Spavor and Michael Kovrig in particular raises concerns for all foreign researchers who visit China regularly and meet colleagues to discuss China’s policies and links with the world. Are we now breaking Chinese law when, without formal approval, we meet our Chinese colleagues who study regional politics?

According to the Foreign Ministry, China is handling the cases according to law. Kovrig is allowed only one consular visit a month and has no lawyer. In keeping with standard detention practice in China, he is also being interrogated three times a day, and not allowed to turn the lights off at night.

In comparison, Meng has hired a Canadian lawyer and is out on bail in her own home in Vancouver. Now, which of the two countries is following the rule of law? How has Canada violated Meng’s human rights, as China claims?

From a political perspective, Meng’s arrest was poorly timed. Although the arrest warrant was issued in August and the Trump administration is not necessarily able to intervene in the Justice Department’s cases, the US would have been wiser to hold off arresting Meng until after the resolution of the trade war with China.

 

[Allon]

I agree with the comparison but not the conclusion that Meng should not have been arrested during the trade war. Anything China does now in retaliation for a clear violation of what multiple countries have agreed to with regard to the embargo with Iran just serves to make them look like vindictive children. In fact, one could argue it was a perfect time to arrest her.

 

The sad part is China is retaliating on people who in some ways could actually help China.

 

Where is Deng Xiaoping when you need him? Mao died a long time ago. China's behavior does not help them on the road to being a superpower. Neither does stealing islands in the South China Sea, even though they will probably be swallowed up by global warming.

 

As if the US did not have its share of bad deeds....