In December 2018, Huawei's CFO, Meng Wanzhou, found herself in hot water when the US Department of Justice deemed her actions as allegedly violating Iran sanctions. This resulted in her arrest in Vancouver. China, seeing this as politically motivated by the Trump administration, repeatedly called for her release.
The diplomatic turbulence caused by this legal saga put pressure on the relationships between China, the US, and Canada. This tension was further intensified when China retaliated by detaining two Canadian citizens. After striking an agreement with the US Justice Department, Meng was able to return home in 2020, with the possibility of charges being dropped in 2022. Coincidentally, the two Canadian nationals, Michael Kovrig and Michael Spavor, were also freed shortly after.
Upon her arrival in Shenzhen, Huawei's hometown, Meng was welcomed with a grand reception, complete with a speech thanking her home country, the Communist Party, and President Xi Jinping for their support. The celebrations spread across the city, with citizens holding banners and chanting patriotic songs.
In the US, Meng's case revolves around allegations that she misled HSBC bank regarding Huawei's ties to its Iranian subsidiary, Skycom, potentially putting HSBC at risk of violating sanctions. However, Chinese state media downplays these claims by emphasizing Meng's denial of wrongdoing throughout.
The Canadian Prime Minister, Justin Trudeau, heartily welcomed the release of Kovrig and Spavor, praising their unbreakable spirit. While the circumstances surrounding their arrests and releases remain unclear, many view them as politically motivated. Despite Spavor's 11-year prison sentence for espionage in August 2020, both individuals were released after Meng.
After the incident, China expressed its intent to strengthen economic ties with Canada. Meng filed a civil lawsuit against the Canadian authorities, which may potentially delay the extradition process to the US. China also introduced a 5-year action plan to attract high-quality foreign direct investment while the ongoing tech and trade war between US and China continues to escalate.
