Huawei CFO arrest raises ‘tech war’ fears

The arrest and likely extradition to the US of Meng Wanzhou, Chief Financial Officer (CFO) of Chinese telecommunications giant Huawei Technologies, has sparked fears of further deterioration in US-China relations and the prospect of a new ‘tech war’.

Meng, who is the daughter of Huawei company founder Ren Zhengfei and deputy chair of Huawei’s board, was arrested in Canada this week and faces an extradition request by the US for allegedly violating American economic sanctions against Iran, Business Insider reports.

The arrest sparked a furious reaction from China. The Chinese embassy in Canada protested that Meng had not violated “any American or Canadian law” and that the arrest harmed “the human rights of the victim”, while Chinese foreign ministry spokesman Geng Shuang demanded an official explanation from the US and Canada, the South China Morning Post reports.

Huawei has faced increasing pressure from Western nations in recent months for alleged security issues. In August, Australia in banned Huawei from supplying equipment for its 5G mobile networks, Reuters reported. British firm BT meanwhile will not use Huawei equipment for its own 5G networks, and will remove Huawei equipment from its existing 3G and 4G networks, according to the BBC.

The arrest of Meng, which came on the same day as US President Donald Trump and Chinese President Xi Jinping’s dinner in Buenos Aires, threatens to upend the uneasy trade-war truce that arose out of that meeting, Bloomberg reports. Global stocks slid over fears the trade war would re-ignite, according to the Financial Times.

According to BBC analysis, the arrest could be seen as heralding a new ‘tech war.’

‘It is hard to overstate the symbolism and significance of the arrest’ which comes ‘at possibly one of the most sensitive times between the two countries in their long and torrid history.’