The news that shook the telecom world yesterday was the arrest of tech giant Huawei Technologies’ Chief Financial Officer Meng Wanzhou who is also the daughter of Huawei’s founder Ren Zhengfei in Vancouver, Canada on the suspicions that she violated U.S. trade sanctions.
Huawei Officials Statement
According to Huawei officials, she has been arrested due to unspecified charges in New York and was arrested while she was transferring flights in Canada. Moreover, the Chinese embassy in Ottawa strongly protested the Huawei arrest stating the fact that she hasn’t violated any U.S. or Canadian law and that Huawei always complies with all the rules and regulations of the countries where it operates and always abides by the export laws and other regulations.
Brief History Of The Relationship Between U.S. And Huawei
It is an established fact that the relation between U.S. and Huawei haven’t been smooth since 2016 and ever since then the U.S and China trade battle has been going on. U.S. accused Huawei about shipping U.S. origin products to Iran thus violating U.S. exports’ laws and regulations. A few months back, the news about U.S. closing ZTE businesses and operations in America surfaced on media and ZTE had to halt its operations worldwide. The U.S. President Donald Trump also signed and passed a bill instructing government agencies to stop using services and technology products from Huawei and ZTE. The tension continued for a month and then things got settled. So, it can be stated that U.S. isn’t in really good terms with Chinese technology giants Huawei as well as ZTE and for this very reason, the occurrence of such incidents is now more common.
Huawei And ZTE Reputation In International Market
The U.S. government and lawmakers haven’t stopped accusing Huawei and even wrote a letter to Canadian Prime minister Justin Trudeau two months ago that warned him to keep Huawei out of the loop for the next generation 5G plans in Canada. Going back further, Australia and America have already banned Huawei and ZTE for providing any sort of equipment, devices, and services for its 5G network. On the same tracks, New Zealand has also blocked requests from Chinese technology equipment’s’ installation for the 5G network. All these steps have been taken based on “network security threats and risks”.
The Repercussion Of Huawei Arrest
After the arrest of Ms. Meng, it is suspected that the tension will continue to rise between the two superpowers U.S. and China. It has cast a dark shadow on trade and other international economic factors and has already shaken stocks market.