China Threatens Canada of ‘grave consequences’ if Huawei executive is not released

On Sunday China summoned the U.S. ambassador after warning Canada of “grave consequences” if a top executive of leading tech giant Huawei isn’t released from detention on a U.S. arrest warrant.

Vice foreign minister Le Yucheng called in Ambassador John McCallum on Saturday over the holding of chief financial officer Meng Wanzhou, who is reportedly suspected of trying to evade US trade curbs on Iran.

Le told the United States to drop its arrest warrant and warned the ambassador that further measures will depend on U.S. actions, the statement said.

Meng faces extradition to the United States after being arrested in Vancouver, British Columbia, on Dec. 1. A bail hearing is set to resume on Monday.

Mr Le told Mr McCallum that Meng’s detention at the request of the United States while transferring flights in Vancouver was a “severe violation” of her “legitimate rights and interests”.

“Such a move ignores the law and is unreasonable, unconscionable, and vile in nature,” Mr Le said in the statement.

“China strongly urges the Canadian side to immediately release the detained Huawei executive … or face grave consequences that the Canadian side should be held accountable for,” Mr Le said.

A Canadian prosecutor urged a Vancouver court to deny bail to Meng, whose case is shaking up US-China relations and worrying global financial markets.

Meng, also the daughter of Huawei’s founder, was detained at the request of the US during a layover at the Vancouver airport on December 1 – the same day that Presidents Donald Trump and Xi Jinping of China agreed over dinner to a 90-day ceasefire in a trade dispute that threatens to disrupt global commerce.

The US alleges that Huawei used a Hong Kong shell company to sell equipment in Iran in violation of US sanctions.

It also says that Meng and Huawei misled American banks about its business dealings in Iran.

The surprise arrest raises doubts about whether the trade truce will hold and whether the world’s two biggest economies can resolve the complicated issues that divide them.

Canadian prosecutor John Gibb-Carsley said in a court hearing on Friday that a warrant had been issued for Meng’s arrest in New York on August 22.

He said Meng, arrested en route to Mexico from Hong Kong, was aware of the investigation and had been avoiding the United States for months, even though her teenage son goes to school in Boston.

Gibb-Carsley alleged that Huawei had done business in Iran through a Hong Kong company called Skycom.

Meng, he said, had misled US banks into thinking that Huawei and Skycom were separate when, in fact, “Skycom was Huawei”.

Meng has contended that Huawei sold Skycom in 2009.

Meng faces up to 30 years in prison in the United States, making her an extreme flight risk, according to the Canadian government lawyer.

But Meng’s attorney David Martin said she would submit to electronic monitoring and wouldn’t skip bail.

The hearing is expected to continue Monday to determine whether Meng will remain in custody.

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