The arrest of Huawei chief financial officer Meng Wanzhou is a dangerous move by US President Donald Trump’s administration in its intensifying conflict with China. If, as Mark Twain reputedly said, history often rhymes, our era increasingly recalls the period preceding 1914. As with Europe’s great powers back then, the United States, led by an administration intent on asserting America’s dominance over China, is pushing the world toward disaster.
The context of the arrest matters enormously. The US requested that Canada arrest Meng in the Vancouver airport en route to Mexico from Hong Kong, and then extradite her to the US. Such a move is almost a US declaration of war on China’s business community. Nearly unprecedented, it puts American businesspeople traveling abroad at much greater risk of such actions by other countries.
The US rarely arrests senior businesspeople, US or foreign, for alleged crimes committed by their companies. Corporate managers are usually arrested for their alleged personal crimes (such as embezzlement, bribery or violence) rather than their company’s alleged malfeasance.
Yes, corporate managers should be held to account for their company’s malfeasance, up to and including criminal charges; but to start this practice with a leading Chinese businessperson, rather than the dozens of culpable US CEOs and CFOs, is a stunning provocation to the Chinese government, business community, and public.
Meng is charged with violating US sanctions on Iran. Yet consider her arrest in the context of the large number of companies, US and non-US, that have violated US sanctions against Iran and other countries. In 2011, for example, JPMorgan Chase paid US$88.3 million in fines for violating US sanctions against Cuba, Iran and Sudan. Yet chief executive officer Jamie Dimon wasn’t grabbed off a plane and whisked into custody.
And JPMorgan Chase was hardly alone in violating US sanctions. Since 2010, the following major financial institutions paid fines for violating US sanctions: Banco do Brasil, Bank of America, Bank of Guam, Bank of Moscow, Bank of Tokyo-Mitsubishi, Barclays, BNP Paribas, Clearstream Banking, Commerzbank, Compass, Crédit Agricole, Deutsche Bank, HSBC, ING, Intesa Sanpaolo, JP Morgan Chase, National Bank of Abu Dhabi, National Bank of Pakistan, PayPal, RBS (ABN Amro), Société Générale, Toronto-Dominion Bank, Trans-Pacific National Bank (now known as Beacon Business Bank), Standard Chartered, and Wells Fargo.
None of the CEOs or CFOs of these sanction-busting banks was arrested and taken into custody for these violations. In all of these cases, the corporation – rather than an individual manager – was held accountable. Nor were they held accountable for the pervasive lawbreaking in the lead-up to or aftermath of the 2008 financial crisis, for which the banks paid a staggering $243 billion in fines, according to a recent tally.
In light of this record, Meng’s arrest is a shocking break with practice. Yes, hold CEOs and CFOs accountable, but start at home in order to avoid hypocrisy, self-interest disguised as high principle, and the risk of inciting a new global conflict
In light of this record, Meng’s arrest is a shocking break with practice. Yes, hold CEOs and CFOs accountable, but start at home in order to avoid hypocrisy, self-interest disguised as high principle, and the risk of inciting a new global conflict.
Quite transparently, the US action against Meng is really part of the Trump administration’s broader attempt to undermine China’s economy by imposing tariffs, closing Western markets to Chinese high-technology exports, and blocking Chinese purchases of US and European technology companies. One can say, without exaggeration, that this is part of an economic war on China, and a reckless one at that.
Huawei is one of China’s most important technology companies, and therefore a prime target in the Trump administration’s effort to slow or stop China’s advance into several high-tech sectors.
America’s motivations in this economic war are partly commercial – to protect and favor laggard US companies – and partly geopolitical. They certainly have nothing to do with upholding the international rule of law.
The US is targeting Huawei especially because of the company’s success in marketing cutting-edge fifth-generation (5G) wireless technologies globally. The US claims the company poses a specific security risk through hidden surveillance capabilities in its hardware and software. Yet the US government has provided no evidence for this claim.
A recent diatribe against Huawei in the Financial Times is revealing in this regard. After conceding that “you cannot have concrete proof of interference in ICT [information and communications technology], unless you are lucky enough to find the needle in the haystack,” the author simply asserts that “you don’t take the risk of putting your security in the hands of a potential adversary.” In other words, while we can’t really point to misbehavior by Huawei, we should blacklist the company nonetheless.
When global trade rules obstruct Trump’s gangster tactics, then the rules have to go, according to him. US Secretary of State Mike Pompeo admitted as much last week in Brussels. “Our administration,” he said, is “lawfully exiting or renegotiating outdated or harmful treaties, trade agreements, and other international arrangements that don’t serve our sovereign interests, or the interests of our allies.” Yet before it exits these agreements, the administration is trashing them through reckless and unilateral actions.
The unprecedented arrest of Meng is even more provocative because it is based on US extra-territorial sanctions, that is, the claim by the US that it can order other countries to stop trading with third parties such as Cuba or Iran. The US would certainly not tolerate China or any other country telling American companies with whom they can or cannot trade.
Sanctions regarding non-national parties (such as US sanctions on a Chinese business) should not be enforced by one country alone, but according to agreements reached within the United Nations Security Council. In that regard, UN Security Council Resolution 2231 calls on all countries to drop sanctions on Iran as part of the 2015 Iran nuclear agreement. Yet the US – and only the US – now rejects the Security Council’s role in such matters.
The Trump administration, not Huawei or China, is today’s greatest threat to the international rule of law, and therefore to global peace.
Copyright: Project Syndicate, 2018.
www.project-syndicate.org
Sorry but you are wrong,it is not about Iran, it is about 2025
Sorry but you are wrong,it is not about Iran, it is about 2025
Poking into the eyes of the Dragon is the new game in town for neocons.
Poking into the eyes of the Dragon is the new game in town for neocons.
Well saying… from a Canadian.
Well saying… from a Canadian.
Great article.
With all the charges and accusations against Huawei flying around, let’s put this event in sharp perspective:
The US is asking a third country (Canada) to arrest a citizen and senior executive of one of the world’s largest technology companies from a fouth country (China), for allegely making inaccurate or fraud statements to a global bank (HSBC) in Hong Kong. The alleged "misrepresentations" were about the realtionship at the time between Huawei and Skycom, which was doing business in Iran against the US sanction against Iran. The specific business activity was about a possible sales of HP computers worth over a million USD sold to Iran by the Skycom between 2009 and 2011. The charge against Ms. Meng by the US is that she had "defrauded" the international bank with operation in the US and caused the bank the risk of being santioned by the US.
For her part, Ms. Meng said Huawei sold Skycom in early 2009 and she left Skycom’s board after that. The US insists that Skycom is a full Huawei sundisidary and is run by Huawei employees.
You be your judge, but to me, Ms. Meng is ebing taken as a hostage and potential bargaining by the US.
Great article.
With all the charges and accusations against Huawei flying around, let’s put this event in sharp perspective:
The US is asking a third country (Canada) to arrest a citizen and senior executive of one of the world’s largest technology companies from a fouth country (China), for allegely making inaccurate or fraud statements to a global bank (HSBC) in Hong Kong. The alleged "misrepresentations" were about the realtionship at the time between Huawei and Skycom, which was doing business in Iran against the US sanction against Iran. The specific business activity was about a possible sales of HP computers worth over a million USD sold to Iran by the Skycom between 2009 and 2011. The charge against Ms. Meng by the US is that she had "defrauded" the international bank with operation in the US and caused the bank the risk of being santioned by the US.
For her part, Ms. Meng said Huawei sold Skycom in early 2009 and she left Skycom’s board after that. The US insists that Skycom is a full Huawei sundisidary and is run by Huawei employees.
You be your judge, but to me, Ms. Meng is ebing taken as a hostage and potential bargaining by the US.
Best article I’ve read refutting the bullies and the threat to the world and this planet!
Best article I’ve read refutting the bullies and the threat to the world and this planet!
WHAT YOU ARE WITNESSING IS THE LAST GASPS OF A DESPERATE FINANCIAL CABAL CALLED THE U.S TRYING TO FOOL THE WORLD IT STILL HAS THE POWER TO RULE THE PLANET. THE US HAS NOT THE MILITARY OR FINANCIAL CAPACITY TO RULE EVEN IT SELF. THE US EQUITIES MARKETS ARE ARTIFICIALLY INFLATED AND WILL COLLAPSE SOON.WHEN THAT HAPPENS LOOK FOR WAR WITH IRAN CHINA N KOREA AND CHINA .BUT TO START VENEZUELA CUBA AND OTHER MESO AND SOUTHERN LATIN AMERICAN REGIMES ARE THE TARGET.
WHAT YOU ARE WITNESSING IS THE LAST GASPS OF A DESPERATE FINANCIAL CABAL CALLED THE U.S TRYING TO FOOL THE WORLD IT STILL HAS THE POWER TO RULE THE PLANET. THE US HAS NOT THE MILITARY OR FINANCIAL CAPACITY TO RULE EVEN IT SELF. THE US EQUITIES MARKETS ARE ARTIFICIALLY INFLATED AND WILL COLLAPSE SOON.WHEN THAT HAPPENS LOOK FOR WAR WITH IRAN CHINA N KOREA AND CHINA .BUT TO START VENEZUELA CUBA AND OTHER MESO AND SOUTHERN LATIN AMERICAN REGIMES ARE THE TARGET.
Hey doo she bag, you have a serious reading comprehension problem.
Hey doo she bag, you have a serious reading comprehension problem.
The US has always been willing wreck other countries like with its oppressive sanctions on Iran, but I think this is the first time they’ve kidnapped and jailed someone from a third country for refusing to help them with their crimes.
China should do either do a Duterte style rescue or jail Americans with similar positions to force them to release her. Doing nothing will only embolden the terrorists.
The US has always been willing wreck other countries like with its oppressive sanctions on Iran, but I think this is the first time they’ve kidnapped and jailed someone from a third country for refusing to help them with their crimes.
China should do either do a Duterte style rescue or jail Americans with similar positions to force them to release her. Doing nothing will only embolden the terrorists.
Bravo JEFF Very informative and thought provoking article….
Bravo JEFF Very informative and thought provoking article….
Good article but forgot to mention USA , and all Five Eyes, require all telecom equipment and cell phones be able to be tapped by government without notice. This includes all Apple equipment iPHones , PC with USA made CPU from Intel, etc, all can be tapped at will and even remote powered on. Huawei probably refused to comply because it would make their equipment expensive, and likely to be made an example of spying even though requested by USA . The bright side is Chinese phones can’t be tapped by Uncle Sam and the fiasco certainly will galvanize Chinese people. Remember the Art of War:
3. The art of war, then, is governed by five constant factors, to be taken into account in one’s deliberations, when seeking to determine the conditions obtaining in the field.
4. These are: (1) The Moral Law; (2) Heaven; (3) Earth; (4) The Commander; (5) Method and discipline.
http://classics.mit.edu/Tzu/artwar.html
Good article but forgot to mention USA , and all Five Eyes, require all telecom equipment and cell phones be able to be tapped by government without notice. This includes all Apple equipment iPHones , PC with USA made CPU from Intel, etc, all can be tapped at will and even remote powered on. Huawei probably refused to comply because it would make their equipment expensive, and likely to be made an example of spying even though requested by USA . The bright side is Chinese phones can be tapped by Uncle Sam and the fiasco certainly will galvanize Chinese people. Remember the Art of War:
3. The art of war, then, is governed by five constant factors, to be taken into account in one’s deliberations, when seeking to determine the conditions obtaining in the field.
4. These are: (1) The Moral Law; (2) Heaven; (3) Earth; (4) The Commander; (5) Method and discipline.
http://classics.mit.edu/Tzu/artwar.html