Canada vs. China, & Huawei

[Randy W]

 . . . and the Chinese take on the situation from the Global Times

China's national power ensures Meng's different outcome from Alstom executive: Global Times editorial

 . . . the result has also effectively safeguarded China's national dignity.

The US and Canada cannot savagely carry out political persecution of Chinese businesspeople. This is the clear attitude of the whole China. China's will is backed by a powerful and persisting force. We believe this factor will occupy a prominent position when the US and Canada reflect on Meng's case.

On the same day Meng flew back to China, Canadians Michael Spavor and Michael Kovrig who were charged with espionage were also released on bail pending trial and flew back to Canada. But the criminal offence committed by the two Canadians is completely different in nature from Meng's innocent political suffering. The distorted narrative of Canada and the West will not blind people around the world, nor can it change people's commonsense judgment of the ins and outs of Meng's case.

Meng's arrest broke some basic rules in the international order and stimulated the action of major power competition. The damage caused is far-reaching. We hope that when Meng's case comes to an end, Washington will reflect on their choices: Did they frighten and defeat Huawei? Did they intimidate China? No. The only effect of this case is to show the world how brutal the US can be to reach its political purpose, and how the US has ignored the rules. The case will be an eternal stain on the US.

We hope that Meng's release will play a positive role in addressing the shock and chaos that began three years ago, and will contribute to a restart of China-Canada relations and the thawing of China-US relations.

We believe many Chinese people have once again thought of the experience of France's Alstom. Due to the company's competition with its American counterparts, Alstom's executive Frédéric Pierucci was sentenced in the US on foreign bribery charges for five years in prison. Alstom paid a huge fine and was forced to sell its core business to the US' General Motors. In comparison, Meng and Huawei are much luckier.

It is China's national power that shaped this final result. A country will be surrounded with more troubles as it gets stronger, but only a strong country can enable us to deal with those troubles with dignity. Whenever we encounter a challenge, we neither have to risk it all in the fight, nor do we need to compromise our dignity.

 

 

[Randy W]

On 9/25/2021 at 6:05 PM, Randy W said:

US reaches deal with Huawei’s Meng Wanzhou, allowing her to return to China

• Taking off from Vancouver a few hours after the US withdrew its extradition request, Meng thanked the Chinese government in an emotional inflight statement
• The deal to free Meng appears to have resulted in China releasing detained Canadians Michael Kovrig and Michael Spavor, who are also flying home

from the SCMP

At the same time that Meng took to the air, a flight carrying Kovrig and Spavor took off from China, Trudeau announced. The men, who were arrested days after Meng, were accused by China of espionage, but were regarded by Ottawa as hostages.

The agreement with the US did not refer to Spavor or Kovrig.

“I think this is a smart move to try and put this issue behind us and try to go to other US-China policy issues,” added Bruen, the White House head of global engagement under former president Barack Obama. “This allows China to make other compromises while telling its folks at home that it got something.”

According to acting US attorney Boeckmann, Meng’s admissions of “multiple material misrepresentations … confirm the crux of the government’s allegations in the prosecution of this financial fraud – that Meng and her fellow Huawei employees engaged in a concerted effort to deceive global financial institutions, the US government and the public about Huawei’s activities in Iran”.

‘Meng has taken responsibility for her principal role in perpetrating a scheme to defraud a global financial institution,’ US prosecutor says

The agreement does not include a deal that would release Canadians Michael Spavor and Michael Kovrig

Appearing before the court via video link from Vancouver, British Columbia, Meng did not plead guilty to the charges but, as part of the agreement, admitted to providing “knowingly false statements”. The Justice Department will also withdraw its request that Meng be extradited to the US from Canada.

“Meng has taken responsibility for her principal role in perpetrating a scheme to defraud a global financial institution,” said acting US Attorney Nicole Boeckmann.

 . . .

Canada’s Globe and Mail reported that the agreement with the US does not include any deal that would release Canadians Michael Spavor and Michael Kovrig, who were arrested in China on espionage charges shortly after Meng’s detention.

Chinese media, meanwhile, remained relatively muted on China freeing detained Canadians Michael Kovrig and Michael Spavor, whose release was announced by Canadian Prime Minister Justin Trudeau.

There were few comments about the release of the two Canadians on Chinese social media. A Global Times editorial, while mentioning the release of Kovrig and Spavor, said the nature of their release was different from Meng‘s because the pair were convicted of criminal charges while Meng was “suffering politically”.

State news agency Xinhua reported that Meng’s release was a result of the efforts by Beijing.

   . . . and third and fourth hostages have also been released.

Canadians Michael Spavor and Michael Kovrig, and now Victor Liu, and Cynthia Liu - see CFL topic American Siblings Barred From Leaving China for 3 Years Return to U.S.

Edited September 28, 2021 by Randy W (see edit history)

[Randy W]

U.S. Set Out to Hobble China’s Huawei, and So It Has
Big maker of telecom gear and phones is short of advanced chips and facing customers who heed sanctions or doubt company’s technical reliability

from the WSJ

She arrived back home in late September to a very different company, one forced into retreat by American sanctions that have left it fighting for its future.

Quote

 

She arrived back home in late September to a very different company, one forced into retreat by American sanctions that have left it fighting for its future.

Huawei is in the midst of a deep slump. As recently as the start of last year, the world’s largest maker of telecommunications equipment was increasing market share in 5G rollouts and surging toward the top of the global smartphone market, shrugging off a year of export restrictions imposed by the Trump administration.

Now, its revenue has dropped for three straight quarters. The company has fallen to No. 9 in smartphone sales, with buyers evaporating from Europe to China. Its global telecom market share is shrinking as it loses out in key markets, a result of U.S. pressure designed to halt the spread of Huawei’s 5G technology plus concerns by some customers over its ability to remain technologically competitive.

Components are running scarce for lines of business such as mobile phones, the result of far-reaching rules enacted by Washington that curbed the ability of Huawei—which the U.S. has accused of stealing trade secrets and violating sanctions—to obtain parts and software made using American technology. Huawei has denied the U.S. allegations. 

 . . .

The restrictions imposed by the U.S. have choked off Huawei’s access to chips from suppliers even outside the U.S., prompting the Chinese company to sell its budget phone unit and to forecast up to $40 billion in lost smartphone revenue this year. It relied on China for two-thirds of its revenue last year, compared with half in 2017.

Washington’s campaign has used some of the most destructive tools in its arsenal, and they have succeeded, forcing Huawei to experiment with new business lines, cede overseas territory and foster a supply chain independent of the U.S., all while its stockpile of high-end chips diminishes. Rarely, if ever, has the U.S. directly taken on such a big overseas company and had such an impact.

 

 

[Randy W]

The U.S. has revoked the American license of China Telecom, one of China’s largest telecommunications firms, ordering China Telecom Americas to discontinue U.S. services within 60 days. 

China Telecom is the latest Chinese firm targeted by U.S. authorities, who cite national security concerns, an action that could increase tensions between the two largest economies in the world.

A spokesperson from China Telecom Americas told Reuters that “The FCC’s decision is disappointing. We plan to pursue all available options while continuing to serve our customers.”

#CGTNAmerica

from CGTN on Facebook 
https://www.facebook.com/ChinaGlobalTVNetwork/posts/431303605029784

FCC Revokes China Telecom America's Telecom Services Authority

•  First, today’s Order finds that China Telecom Americas, a U.S. subsidiary of a Chinese state-owned enterprise, is subject to exploitation, influence, and control by the Chinese government and is highly likely to be forced to comply with Chinese government requests without sufficient legal procedures subject to independent judicial oversight.
•  Second, given the changed national security environment with respect to China since the Commission authorized China Telecom Americas to provide telecommunications services in the United States almost two decades ago, the Order finds that China Telecom Americas’ ownership and control by the Chinese government raise significant national security and law enforcement risks by providing opportunities for China Telecom Americas, its parent entities, and the Chinese government to access, store, disrupt, and/or misroute U.S. communications, which in turn allow them to engage in espionage and other harmful activities against the United States.
•  Third, China Telecom Americas’ conduct and representations to the Commission and other U.S. government agencies demonstrate a lack of candor, trustworthiness, and reliability that erodes the baseline level of trust that the Commission and other U.S. government agencies require of telecommunications carriers given the critical nature of the provision of telecommunications service in the United States.
•  Fourth, the Order finds that further mitigation would not address these significant national security and law enforcement concerns.
•  Fifth, the Order finds that China Telecom Americas willfully violated two of the five provisions of the 2007 Letter of Assurances with the Executive Branch agencies, compliance with which is an express condition of its international section 214 authorizations.
•  Finally, although it is not necessary to support these findings and conclusions, the Order finds that the classified evidence submitted by the Executive Branch agencies further supports the decisions to revoke the domestic authority and revoke and terminate the international authorizations issued to China Telecom Americas, and the determination that further mitigation will not address the substantial national security and law enforcement risks.

Edited October 28, 2021 by Randy W (see edit history)

[Randy W]

Because of a recent "confession" by Michael Spavor about their activities while in China, this back in the news again. Spavor and Kovrig were released by Chinese authorities immediately after the release of Meng Wanzhou.

Canada owes an apology to China and others deceived: Global Times editorial

Quote

According to the Globe and Mail, Spavor blamed Kovrig for their detention in China and alleged that he "unwittingly" provided some of the intelligence to Kovrig, who, "unbeknownst to Mr Spavor," passed the information to "the Canadian government and its Five Eyes spy-service partners." These statements confirm Chinese side's charge. If Spavor had disclosed this information in China or to Chinese media, he would undoubtedly be portrayed as "coerced." However, this revelation came more than two years after he gained freedom and exposed it in his own country, which was reported by Canadian media. It is reported that Spavor is seeking a multimillion-dollar settlement with the Canadian government, or else he will sue the Canadian government and Kovrig. The situation is still evolving, and the Canadian government cannot evade it.

 

This is from Channel News Asia (Singapore)

Canadian claims he was used by Ottawa for intelligence gathering in China

Quote

 

Spavor reportedly now blames Kovrig, with whom he had provided information on North Korea, unaware that it would be shared with Canada and its intelligence partners, for their incarceration.

And, he is seeking millions of dollars in compensation from Ottawa, according to the Globe and Mail newspaper.

"The allegations are unfounded," Kovrig told AFP.

Spavor's lawyer declined to comment while Canada's foreign ministry referred to Prime Minister Justin Trudeau's 2021 remarks also calling the espionage charges "unfounded".

China's embassy in Ottawa, however, said in a statement that Spavor's claim "fully exposes Canada's hypocrisy".

 

 

Edited November 22, 2023 by Randy W (see edit history)