Equity markets fell sharply in Asia after news media reported the arrest in Canada of Huawei’s chief financial officer Meng Wanzhou, pending extradition to the United States on charges of violating US sanctions against Iran.
The news has stunned financial market participants and policy analysts, for two reasons.
First, never before has the United States attempted the extraterritorial rendition of a foreign citizen – Meng is a Chinese national – in connection with sanctions violations. It has imposed travel and banking restrictions, but seeking an arrest warrant for this is entirely without precedent.
Earlier this year, the US government banned exports of US computer chips to the Chinese telecommunications equipment ZTE in retaliation for violations of sanctions against Iran, but sought no arrests.
Second, Meng was arrested on December 1, the day that President Trump and his economic team dined with President Xi Jinping and his advisers at the Group of 20 Summit in Buenos Aires. Trump has every interest in striking a deal with China that would enable him to declare some measure of victory in a trade war, and China has shown every indication that it is willing to make concessions to the United States on intellectual property protection, financial market opening and, at least in rhetoric, on industrial policy, while increasing its imports from the United States.
Who ordered arrest?
The question is: Who ordered the arrest, and why?
It is possible that President Trump knew about it and sanctioned the arrest, to be sure. But it is unlikely that the president would escalate the conflict with China with the arrest of a senior executive of China’s flagship high-tech manufacturer on the same day that he sought to de-escalate the trade war.
If Trump did not initiate the arrest, who did? There are two alternative possibilities.
The first is that the order came from administration officials who believe that the United States must provoke a confrontation with Beijing now, before China becomes too powerful to intimidate. Some parts of the permanent bureaucracy and the intelligence community believe that China’s economy is fragile and that an economic war would produce an economic crisis and political instability, perhaps even toppling Xi Jinping.
That view may seem fanciful, but it is argued seriously, for example by some former senior officials of the Trump administration.
The second possibility is that Trump’s enemies in the permanent bureaucracy simply want to prevent the president from negotiating a deal with China that would enhance his image and remove risks to economic growth.
The Trump administration has been uncharacteristically silent about the matter. Trump and his closest advisers have shown no hesitation to comment about China trade matters.
Beijing demands release
The only public comment from an American politician came from Senator Marco Rubio (R-FL), who earlier this year fought the Trump administration’s efforts to reach a settlement with ZTE. Rubio “celebrated the arrest” in an email to the website Axios.
The US Department of Justice declined to comment. The sanctions regime against Iran is the responsibility of the Treasury’s Office of Terrorism and Financial Intelligence, now directed by Undersecretary of Treasury Sigal Mandelker, a law enforcement veteran who served in the Bush Administration after the 9/11 attacks and advised Homeland Security Secretary Michael Chertoff during the George W. Bush Administration.
The Office of Terrorism and Financial Intelligence is a joint project with the Central Intelligence Agency. Undersecretary Mandelker’s predecessor in the position, attorney David Cohen, subsequently became a deputy director of the CIA. Ms Mandelker’s office initiated the administration’s sanctions against ZTE earlier this year. The Wall Street Journal reported on April 25 that the Justice Department was investigating whether Huawei violated American sanctions against Iran.
For its part, China expressed outrage at the arrest, and its embassy in Canada demanded the release of Meng.
Most of all, China’s government was taken by surprise, and is trying to understand what happened and why.
In any case, the Vancouver arrest raises serious issues. If the White House is behind the action, it casts doubt on the administration’s desire to come to any sort of accommodation with China.
Or, if the arrest was initiated by rogue elements in the administration, it would suggest that Trump is having difficulty controlling his own government.
Ray Joseph Cormier
US are bombing terrorrists, like ISIS, Al Qaeda, etc.
Arthur Alonzo
In a democracy, the courts has to decide. Unlike communist and authoritarian China, dictator and Emperor Xi Jin Pig and CCP can order to arrest anybody. Its a lawless country. The law is the CCP.
Arthur Alonzo
In a democracy, the courts has to decide. Unlike communist and authoritarian China, dictator and Emperor Xi Jin Pig and CCP can order to arrest anybody. Its a lawless country. The law is the CCP.
Enb Libra If you go back and review the history of the Syrian WORLD WAR. The US claimed it was bombing ISIS the US Ally Saudia Arabia created and taught to behead. ISIS, which started with the illegal US invasion of Iraq in violation of International Law. The US took it upon itself in it’s delusional exceptionalism, without United Nations Legal Authority to invade Iraq even though the UN said, No.
ISIS was getting stronger even with the alleged US bombing. Maybe they missed deliberately? The US gave safe passage to ISIS fighters on many occasions.
ISIS was really getting bombed only when Russia entered the Syrian WORLD WAR only in 2015. Russia bombing ISIS turned the tide.
The US used ISIS as the rational, in it’s delusional exceptionalism, to start bombing in Syria in violation of International Law.
Former NATO Supreme Commander, US General Wesley Clark, blew the whistle in 2007, about US WAR PLANS brought out within weeks of 9/11, to change the regimes of Iraq, Libya, Syria, and AT THE END, Iran.
Rebublican Bush did Iraq in 2003.
Democrat Obama Obama did Libya, and started the Syrian regime change phase of the 2001 US WAR PLAN in 2011.
Trump has made it known, he will be following that same 2001 US WAR PLAN leading to THE END by waging Economic Warfare to deliberately destroy the Iranian Economy supporting it’s 80 MILLION PEOPLE before having to resort to bombs.
Enb Libra If you go back and review the history of the Syrian WORLD WAR. The US claimed it was bombing ISIS the US Ally Saudia Arabia created and taught to behead. ISIS, which started with the illegal US invasion of Iraq in violation of International Law. The US took it upon itself in it’s delusional exceptionalism, without United Nations Legal Authority to invade Iraq even though the UN said, No.
ISIS was getting stronger even with the alleged US bombing. Maybe they missed deliberately? The US gave safe passage to ISIS fighters on many occasions.
ISIS was really getting bombed only when Russia entered the Syrian WORLD WAR only in 2015. Russia bombing ISIS turned the tide.
The US used ISIS as the rational, in it’s delusional exceptionalism, to start bombing in Syria in violation of International Law.
Former NATO Supreme Commander, US General Wesley Clark, blew the whistle in 2007, about US WAR PLANS brought out within weeks of 9/11, to change the regimes of Iraq, Libya, Syria, and AT THE END, Iran.
Rebublican Bush did Iraq in 2003.
Democrat Obama Obama did Libya, and started the Syrian regime change phase of the 2001 US WAR PLAN in 2011.
Trump has made it known, he will be following that same 2001 US WAR PLAN leading to THE END by waging Economic Warfare to deliberately destroy the Iranian Economy supporting it’s 80 MILLION PEOPLE before having to resort to bombs.
Enb Libra
Does it mean India has been sucked by the US?
Enb Libra
Does it mean India has been sucked by the US?
Richard Truong Comrade we are currently concluding a trade agreement with India to take all their stray dogs off their hands… yum yum.
Richard Truong Comrade we are currently concluding a trade agreement with India to take all their stray dogs off their hands… yum yum.
Enb Libra Comrade, we have tracked down Yashad, and unfortunately he does have a larger weapon than any Chinese.
Enb Libra Comrade, we have tracked down Yashad, and unfortunately he does have a larger weapon than any Chinese.
Suppose China is already too strong to be intimidated ? And I’m not just speaking of economic strength either. After all Cuba was, and probably still is, too strong to be intimidated.
Suppose China is already too strong to be intimidated ? And I’m not just speaking of economic strength either. After all Cuba was, and probably still is, too strong to be intimidated.
Like President T hasn’t violated any laws 🙂 🙂 🙂 Let’s start with tax evasion, then move on to paying bribes during and election campaign, and yes sadly even to treason with Russia.
Like President T hasn’t violated any laws 🙂 🙂 🙂 Let’s start with tax evasion, then move on to paying bribes during and election campaign, and yes sadly even to treason with Russia.
That’s not how the law works. Where did you go to law school ? You are a fake.
That’s not how the law works. Where did you go to law school ? You are a fake.
Winston Medved why do American women bleach their assholes ?
Winston Medved why do American women bleach their assholes ?
Trump’s enemies could be either the democrats or his old assigned warmongers.
Trump’s enemies could be either the democrats or his old assigned warmongers.
Enb Libra
You are deranged… Go get help from a psychiatrist.
Enb Libra
You are deranged… Go get help from a psychiatrist.
Francis Chow
You’re the one who’s fake and blind unthiking Wumao. If you’re literate enough read link below to understand. Shut up if you don’t accept. You Wumaos cannot accept that China is just 2nd place, just 2nd place economically and US is the preeminent Hyperpower in the world. China is not even a close second.
https://beta.scmp.com/economy/china-economy/article/2176998/explained-how-us-uses-anticorruption-laws-and-sanctions-police?fbclid=IwAR1pD-_Dw4tJXEC6-FIx_cl3Ze0NfRJ2nHAGeJ2cCqKuflh_MUmsjyRumWI
Your GDP is also rising due to this contribution where China has no competition. LOL
https://www.theepochtimes.com/tribunal-investigates-allegations-of-forced-organ-harvesting-in-china_2733823.html
Francis Chow
You’re the one who’s fake and blind unthiking Wumao. If you’re literate enough read link below to understand. Shut up if you don’t accept. You Wumaos cannot accept that China is just 2nd place, just 2nd place economically and US is the preeminent Hyperpower in the world. China is not even a close second.
https://beta.scmp.com/economy/china-economy/article/2176998/explained-how-us-uses-anticorruption-laws-and-sanctions-police?fbclid=IwAR1pD-_Dw4tJXEC6-FIx_cl3Ze0NfRJ2nHAGeJ2cCqKuflh_MUmsjyRumWI
Your GDP is also rising due to this contribution where China has no competition. LOL
https://www.theepochtimes.com/tribunal-investigates-allegations-of-forced-organ-harvesting-in-china_2733823.html
sses to me, speaking as a British Columbian (i.e. Candian, for those who don’t know that), that the trade relationship and hope-for free trade deal that’s most immediately at stake is the one with Canada, and Justin Trudeau’s attempts to curry favour with China by trying to build a pipeline to the Pacific across a province that doesn’t want it.
This is not widely understood nor known of in the outside world, and Trudeau gets portrayed as some kind of wonderful young leader when really he’s a whipping-boy for the oil industry and our banks and our mining companies and big realtors while juggling the dicey relationship;s with Washington and Beijing.
Coverage of Meng’s arrest by Canada in Vancouver varies… the Asia Times says the Canadian ambassador was ‘summoned’, the Guardian artrcle says Canada is being threatned with extreme consequences by China, and the CBC, the neutered national network in Canada, says somehting rarther placid, trying to keep; the national head low.
It so happens that Washington state does not at all support that pipeline to the Pacific/China that Trudeau wants to build to try and make China happy and willing to sign a free-trade deal (that’s not all they want cf. the Northwest Passage, for starters). The TMX expansion – that pipeline – will triple rates for current users (i.e. Washingon’s four refineries and another in Oregon) without increasing their supply… the whole thing is being built for China.. who might not necessarily want "Alberta sweet light crude", which is the marketing brand for Alberta’s shitty-grade tar sands bitumen condensate aka dilbit.
And it’s a given that the huge increase in tanker traffic through the Salish Sea (Strait of Juan de Fuca and the Srait of Georgia, and past the openng of Puget Sound at Port Townsend, will be the death-knell for the last of the NW Coast’s southern resdient orca pods… a Washington icon even more than they are for BC.
So I can see the US being perfeclty happy about conning Canada into doing this, so as to endanger the too-tight Trudeau-Xi suck-up going on….. and which is the political basis for the building of the pipeline expansion. About which Canada’s and neighbouring Alberta’s silliness has irritated Washington’s governor – no doubt, because with Rachel Notley, Preem of Alberta, talking abouut "shutting off the taps" to bring BC to its knees, it was actually Washington state whose taps she’d be shutting off… take one look at the miltary bases and factories in Puget Sound and you’ll understand what that is a VERY bad idea…
and the US wouldn’t have not take note of its implications…
there is more to this than meets the eye… and since your article barely mentions Canada at al… it’s a gross oversight.
sses to me, speaking as a British Columbian (i.e. Candian, for those who don’t know that), that the trade relationship and hope-for free trade deal that’s most immediately at stake is the one with Canada, and Justin Trudeau’s attempts to curry favour with China by trying to build a pipeline to the Pacific across a province that doesn’t want it.
This is not widely understood nor known of in the outside world, and Trudeau gets portrayed as some kind of wonderful young leader when really he’s a whipping-boy for the oil industry and our banks and our mining companies and big realtors while juggling the dicey relationship;s with Washington and Beijing.
Coverage of Meng’s arrest by Canada in Vancouver varies… the Asia Times says the Canadian ambassador was ‘summoned’, the Guardian artrcle says Canada is being threatned with extreme consequences by China, and the CBC, the neutered national network in Canada, says somehting rarther placid, trying to keep; the national head low.
It so happens that Washington state does not at all support that pipeline to the Pacific/China that Trudeau wants to build to try and make China happy and willing to sign a free-trade deal (that’s not all they want cf. the Northwest Passage, for starters). The TMX expansion – that pipeline – will triple rates for current users (i.e. Washingon’s four refineries and another in Oregon) without increasing their supply… the whole thing is being built for China.. who might not necessarily want "Alberta sweet light crude", which is the marketing brand for Alberta’s shitty-grade tar sands bitumen condensate aka dilbit.
And it’s a given that the huge increase in tanker traffic through the Salish Sea (Strait of Juan de Fuca and the Srait of Georgia, and past the openng of Puget Sound at Port Townsend, will be the death-knell for the last of the NW Coast’s southern resdient orca pods… a Washington icon even more than they are for BC.
So I can see the US being perfeclty happy about conning Canada into doing this, so as to endanger the too-tight Trudeau-Xi suck-up going on….. and which is the political basis for the building of the pipeline expansion. About which Canada’s and neighbouring Alberta’s silliness has irritated Washington’s governor – no doubt, because with Rachel Notley, Preem of Alberta, talking abouut "shutting off the taps" to bring BC to its knees, it was actually Washington state whose taps she’d be shutting off… take one look at the miltary bases and factories in Puget Sound and you’ll understand what that is a VERY bad idea…
and the US wouldn’t have not take note of its implications…
there is more to this than meets the eye… and since your article barely mentions Canada at al… it’s a gross oversight.
The US is playing what it thinks is a clever game: against both Canada and China. If Canada extradites, they impair the trade deal Canada wants with China. If Canada doesn’t extradite they have more leverage to bully Canada in trade negotiations. Meng is a small fish, unimportant to any of the players in yerms of geostrategy.
The US is playing what it thinks is a clever game: against both Canada and China. If Canada extradites, they impair the trade deal Canada wants with China. If Canada doesn’t extradite they have more leverage to bully Canada in trade negotiations. Meng is a small fish, unimportant to any of the players in yerms of geostrategy.