China says Meng - the daughter of Huawei founder Ren Zhengfei, a former engineer in China's People's Liberation Army - has violated no laws in Canada or the United States and has demanded her release.
Chinese telecom giant Huawei's chief financial officer, arrested in Canada, faces United States 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. He also said no criminal charges have been levied against Huawei, unlike fellow Chinese telecom giant ZTE, which agreed to pay up to US$1.4-billion in penalties this summer after breaking the trade embargo with Iran. While there is some fear that the arrest could hurt talks between the USA and China to end the current trade war between the two countries, Canadian prosecutors have called Ming a flight risk and have requested that the court place her in a detention center. He said her actions exposed the banks to potential fines for violating USA sanctions.
Gibb-Carsley told the hearing that Reuters reported in 2013 that Huawei was operating Skycom, triggering Huawei executives including Meng to allegedly make a series of misrepresentations. A spokesperson for the Department of Justice Canada told Daily Hive Meng is being sought for extradition by the United States.
Meng was arrested in Vancouver last Saturday at the US' request, on suspicion of violating USA sanctions against Iran.
Huawei said on Wednesday that "the company has been provided very little information regarding the charges and is not aware of any wrongdoing by Ms. Meng". While unproven, the allegation was enough to take action against the company, including a ban on Huawei products in U.S. military bases in May.
Earlier this week, Canadian officials said Ottawa was continuing to review Huawei's technology for use in upcoming fifth generation networks.
Meng was arrested in Vancouver on 1 December and appeared in one of the city's courts on Friday, where prosecutor John Gibb-Carsley asked the judge to deny her application for bail.
Freeland reiterated what Prime Minister Justin Trudeau said Thursday: that Meng's arrest was part of an independent legal process that is separate from politics.
Chinese state-run media said the arrest was part of USA efforts to curtail China´s tech industry. A Canadian official authorized her arrest in November.
In this courtroom sketch, Meng, right, sits beside a translator during a bail hearing at British Columbia Supreme Court in Vancouver.
"China talks are going very well!" If convicted, Meng faces more than 30 years in prison.
A White House official said Trump did not know about a USA request for her extradition from Canada before he met Xi and agreed to a 90-day truce in the brewing trade war.
"Obviously, Washington is resorting to a despicable rogue's approach as it can not stop Huawei's 5G advance in the market", it went on.
Congress issued a report concluding that "Huawei did not fully cooperate with the investigation and was unwilling to explain its relationship with the Chinese government or Chinese Communist Party, while credible evidence exists that it fails to comply with USA laws".
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.
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