The world’s largest telecoms equipment provider faces the risk of US sanctions, which could block access to American hi-tech components and limit the number of markets where the firm can sell its products
China’s push to lead the global development and roll-out of 5G mobile networks could be at risk, following the recent arrest of Huawei Technologies chief financial officer Sabrina Meng Wanzhou.
Analysts on Thursday said the arrest and detention in Canada of Meng, the daughter of Huawei founder Ren Zhengfei and the firm’s deputy chairwoman, at the request of US authorities marked a deeper scrutiny of the Shenzhen-based company by Washington even as the two countries agreed to a 90-day trade war truce.
“It is not yet clear whether there has been a breach committed, but for the CFO to be detained we can expect serious accusations to be levied against Huawei in the coming days,” said Paul Haswell, a partner who advises technology companies at international law firm Pinsent Masons.
Haswell said efforts by Huawei, the world’s largest telecommunications equipment maker, to lead global 5G network deployments may be hampered if it incurs US sanctions, which would block access to American technology suppliers and limit the number of markets where the company can sell its products.
Meng, who was arrested in Vancouver on December 1 while in transit, is facing extradition to the US. The Huawei CFO, whose bail hearing is scheduled this Friday, had earlier sought a publication ban on the details of her arrest, according to Canada’s justice department.
Beijing had already lodged protests with Washington and Ottawa, and offered consular help to Meng soon after she was detained, Chinese foreign ministry spokesman Geng Shuang said on Thursday.
The Huawei CFO’s ordeal has heightened speculation that Huawei could be targeted with a ban on purchasing US hi-tech software and hardware, which was slapped on ZTE Corp earlier this year for making false statements about disciplining executives involved in violating US trade sanctions on Iran and North Korea.
