Wanzhou Meng, Huawei Technologies Co.’s chief financial officer, who also serves as deputy chairwoman of the company was arrested in Canada over potential violations of U.S. sanctions on Iran. According to the Canada Justice Department spokesman Ian McLeod, the daughter of Huawei’s founder is facing extradition to the U.S.
The arrest of Huawei’s CFO in Canada has sparked outrage from China, as the Chinese embassy in Canada, immediately protested and demanded that the U.S. and its neighbour “rectify wrongdoings” and free Meng.
The whole case came into existence when the U.S. Department of Justice in April opened an investigation into whether the telecommunications giant sold gear to Iran despite sanctions on exports to the region.
After the news of Meng’s arrest broke out, shares of several Huawei’s suppliers, including Largan Precision Co. and MediaTek Inc. fell and many traders believe caused the equity futures slid.
Huawei released a statement that read, “The company has been provided very little information regarding the charges and is not aware of any wrongdoing by Ms Meng.”
Huawei also said. “The company believes the Canadian and U.S. legal systems will ultimately reach a just conclusion. Huawei complies with all applicable laws and regulations where it operates, including applicable export control and sanction laws and regulations of the UN, U.S. and EU.”