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 By Michel COMTE Ottawa (AFP) Jan 17, 2020
A Canadian court on Monday will consider a US request to hand over Chinese tech executive Meng Wanzhou, whose arrest 13 months ago on fraud charges plunged Canada-China relations into a deep freeze. The extradition hearing comes after Beijing detained two Canadians and blocked billions of dollars worth of Canadian agricultural shipments in apparent retaliation for Meng's arrest. Taking her into custody also stuck Canada in the middle of a row between China and the US, which views Huawei as a security risk. Some observers are hoping for her release at the end of the five-day hearing focused on whether the US accusations are also a crime in Canada. This is a key test in determining if she should be extradited to the United States to face trial. Others -- including a former Canadian prime minister -- are urging Justice Minister David Lametti to step in and quash the proceedings and release Meng in a bid to normalize Canada-China relations. "The minister of justice has the power to stop extradition proceedings at any time," legal scholar Gary Botting told AFP, noting it has been done in other cases on compassionate grounds. China's ambassador to Canada, Cong Peiwu, has said Meng's release was a "precondition" for improved bilateral ties. Ottawa, however, has maintained it will not interfere in the legal process, while enlisting allies' help in pressuring Beijing to release the two Canadians. "The most obvious way to end this is to release her," Botting said, adding that Ottawa was "naive" to jeopardize its own interests to satisfy the US extradition request. "It was predictable that China would not be happy, and Canada could have avoided the fallout," he said. Meng was arrested on December 1, 2018 after disembarking on a stopover from a Hong Kong-to-Mexico flight, prompting an angry response from Beijing. - Sanctions-busting bank fraud - The United States alleges Meng lied to HSBC about Huawei's relationship with its Iran-based affiliate Skycom, putting the bank at risk of violating US sanctions against Iran. "Simply put, there is evidence she deceived HSBC in order to induce it to continue to provide banking services to Huawei," the US justice department said in court filings. Meng has denied the allegations. She has been out on bail, living in one of her two Vancouver mansions for the past year, awaiting trial. The US justice department has said in arguing for her extradition that the fraud allegations against Meng would be considered a crime in Canada if they had occurred here. Her lawyers, however, insist the misrepresentations do not amount to fraud, but rather are an attempt by the United States to enforce its sanctions against Iran -- which Canada has not matched. Meng's father and Huawei founder Ren Zhengfei told the Globe and Mail that he'd thought his daughter's arrest was due to a "misunderstanding," but after the US imposed strict export controls on Huawei in May, he sensed the US was plotting "to crush Huawei, and Meng Wanzhou was only used as a pawn." Chinese officials speaking to their Canadian counterparts have also reportedly cast her arrest as "a Canadian-US political conspiracy." Former Canadian prime minister Jean Chretien and his ex-deputy John Manley have urged Prime Minister Justin Trudeau to simply release Meng in what Manley described as a "prisoner swap" for former Canadian diplomat Michael Spavor and businessman Michael Kovrig. The pair were, as Ottawa claims, "arbitrarily detained" nine days after Meng's arrest and accused of espionage. That, however, risks legitimizing Beijing's "hostage diplomacy" tactics, according to leading extradition experts consulted by AFP. Some warned such a move could also strain Canada-US ties. But Botting opined: "I don't think the US would give it a second thought if Canada refused to extradite her. "Canada has been swept up in this, but the US couldn't give a damn, frankly," he said. If the judge rules that the so-called double criminality test has not been met, Meng could be freed as early as the end of next week. Otherwise, the hearing will proceed to a second phase in June when defense arguments that Canadian and US authorities conspired to nab Meng as part of a "covert criminal investigation" would be heard.
Five things to know in the case of Huawei's Meng Meng Wanzhou, the chief financial officer of the Chinese telecom giant and daughter of its founder Ren Zhengfei, was detained in the Canadian city on a US warrant in late 2018. Her arrest put the 47-year-old at the centre of the US and China's battle over Huawei's growing global reach. Here are five things to know about the situation: - Technology giant - Founded by former People's Liberation Army (PLA) engineer Ren in 1987, Huawei has grown into one of the world's biggest technology firms. It is now the top producer of telecommunications networking equipment and the number-two supplier of smartphones, behind Samsung and ahead of Apple. Huawei equipment carries much of the planet's data and communications traffic, making it a key player in the coming advent of hyper-fast 5G networks that will enable revolutionary new technologies such as artificial intelligence. - Distrust in Washington - Ren's military background and privately held Huawei's opaque culture have long fuelled suspicions of close ties to China's one-party security state. This has stoked US fears that Beijing could use the firm as a Trojan horse for espionage or cyber-attacks, accusations that company executives strenuously reject. The Trump administration has essentially barred Huawei from the US market and waged a global campaign to isolate the company. - 'Double criminality' - Meng, seen as a possible successor to Ren as chief executive, was held on a US warrant for allegedly lying to banks about violating Iran sanctions and put under house arrest. She denies the allegations. In hearings opening Monday, her lawyers will maintain that she cannot be turned over to the United States anyway because violating US sanctions against Iran is not a crime in Canada -- failing the "double criminality" test. Canada's attorney-general, however, is expected to argue that her banking interactions amounted to fraud, which is a crime in Canada. Meng's legal fight could take months or even years. - Ripple effect - The case is being watched in part because of its potential ripple effect on ties between the three countries. Meng's arrest caused an unprecedented rift between Canada and China, which was followed up by detaining former Canadian diplomat Michael Kovrig and businessman Michael Spavor on espionage suspicions. Their arrests have been widely interpreted as retribution by Beijing aimed at pressuring Canada to free Meng. The two men remain in China's opaque penal system. On the other side is the United States, which on Wednesday signed a truce with China in their lengthy trade war. Donald Trump has pushed hard for the agreement between the two economic giants and has previously suggested that he may intervene in Meng's case to keep trade negotiations on track. - High (tech) stakes - The US has pushed its global allies to ban Huawei equipment from domestic networks, but the campaign has met with mixed success. Australia and Japan have taken steps to block or restrict the Chinese company's participation in their 5G rollouts, and European telecommunications operators including Norway's Telenor and Sweden's Telia have passed over Huawei as a supplier. But several other European countries have not blocked the firm, with Germany resisting US pressure and even close ally Britain indicating it may be open to using some Huawei equipment. Still, Huawei executives are concerned, with Chairman Eric Xu saying in a New Year message to staff that revenue for 2019 was likely to be lower than originally forecast.
Encryption battle reignited as US govt at loggerheads with Apple Washington (AFP) Jan 15, 2020 Apple and the US government are at loggerheads for the second time in four years over unlocking iPhones connected to a mass shooting, reviving debate over law enforcement access to encrypted devices. Attorney General Bill Barr said Monday that Apple failed to provide "substantive assistance" in unlocking two iPhones in the investigation into the December shooting deaths of three US sailors at a Florida naval station, which he called an "act of terrorism." Apple disputed Barr's claim, while argui ... read more
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