Meng Wanzhou, the Huawei manager, hailed as hero upon her return to China from Canada
Meng found herself in hot water with the United States Department of Justice for the alleged violation of Iran sanctions in December 2018, leading to her arrest in Vancouver. China deemed the detainment as politically motivated by the former Trump administration, time and time again calling for her release.
The legal saga between China, the US, and Canada has put pressure on their relationships, especially after China retaliated by detaining two Canadian citizens – a move widely interpreted as political retribution.
Weeks later, Meng was able to return home after striking an agreement with the US Justice Department to postpone prosecution against her until 2022, with the possibility of charges being dropped afterward. Two Canadian nationals, Michael Kovrig, and Michael Spavor, also found themselves in a similar situation, being released shortly after Meng.
Shenzhen, Huawei's hometown, honored Meng with a grand red carpet reception upon her arrival, accompanied by a touching speech in which she thanked her home country, the Communist Party, and President Xi Jinping for their unwavering support throughout her ordeal.
Despite constantly referring to herself as an ordinary Chinese citizen, Meng received anything but ordinary treatment upon her return. The arrival ceremony at the airport was far from typical, with the control tower announcing: "Welcome back, Mrs. Meng Wanzhou! The Motherland will always be your strongest support." Hundreds of people awaited her at the arrival hall, breaking out in national pride, chanting, and singing patriotic songs.
On one of the tallest skyscrapers in Shenzhen, the Ping An Financial Center, the message: "Welcome Home, Meng Wanzhou" was displayed to the world. The internet erupted with celebration, with many regarding Meng as a national hero.
Meanwhile, in the U.S., the case against Meng revolves around allegations that she misled the HSBC bank over Huawei's ties to its Iranian subsidiary Skycom, potentially putting the bank at risk of violating sanctions. However, reports from Chinese state media downplay the issue, emphasizing that Meng has denied any wrongdoing throughout.
Despite little mention of the release of the two Canadian nationals, Michael Kovrig, and Michael Spavor, they too arrived in Calgary, Alberta, shortly after Meng. Justin Trudeau, the Canadian Prime Minister, welcomed them with heartfelt greetings, praising their unbreakable spirit.
While the details of their arrests and release remain unclear, many regard the situation as politically motivated, with some speculating that they were held as political hostages. Spavor, a businessman with connections to North Korea, and Kovrig, a former Canadian diplomat, were detained in China during controversial circumstances.
Spavor received an eleven-year prison sentence in August 2020, accused of espionage and unlawfully providing state secrets, only nine days after Meng's arrest. Despite their releases being announced within hours of each other, the timing of the two events generated countless discussions on the internet and social media.
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Following Meng Wanzhou's release from Canada on bail, several business developments and implications for foreign investments in China have emerged:
- China-Canada Economic Relations
- Deepening Ties: China has expressed its intention to strengthen economic ties with Canada, despite the ongoing tensions. The Chinese Embassy in Ottawa has hinted toward the possibility of negotiating a China-Canada Free Trade Agreement to bolster trade relations between the two nations.
- Meng Wanzhou's Civil Complaint
- Lawsuit Against Authorities: Meng has announced her intentions to file a civil lawsuit against the Canadian authorities over their conduct during her arrest, which may potentially delay the extradition process to the US.
- China's 5-Year Foreign Investment Plan
- Attracting Foreign Investment: China has introduced a 5-year action plan to attract high-quality foreign direct investment, especially in sectors such as animal husbandry, high-tech fields, and services like elderly care and tourism. This plan includes abolishing barriers for domestic loans for foreign-invested firms, which aims to increase inflows from outside countries.
- US-China Tech and Trade War
- Sanctions and Retaliation: The ongoing tech and trade war between the US and China continues to escalate, with both nations imposing sanctions on each other. China has imposed sanctions on 28 US entities, including defense contractors, in response to US sanctions on Chinese firms. The intensifying geopolitical tensions in the tech sector underscore the growing rivalry between the two nations.
