The U.S. Files 13 Felony Charges against Chinese Smartphone Maker Huawei

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The plot thickens in the Meng Wanzhou debacle. Meng Wanzhou is the CFO of Huawei, the company her father started in China. Meng is in Vancouver waiting for the United States to extradite her for violating the sanctions against Iran. And that’s not all. The acting U.S. District Attorney Matt Whitaker believes Meng and her father’s company committed wire and bank fraud as well as committing acts that the U.S. calls, conspiracy charges.

When Canada arrested Meng, they didn’t realize how connected Huawei was to the Chinese government. The name Huawei means “to serve the government,” so according to some legal experts, the company is an arm of the Chinese government. China responded to Meng’s arrest before the Canadian ink on the arrest warrant dried. Chinese officials immediately found and then held two Canadians without cause, according to Canadian lawmakers. China believes the two Canadians may be part of Canada’s intelligence community.

The Canadian ambassador to China got his walking papers from Prime Minister Trudeau. The ambassador said Meng is a pawn in Trump’s trade war. Ambassador McCallum said Trump’s comment that he may negotiate Meng’s release with the Chinese did put a political spin on the Meng story. Mr. Trump wants the Chinese to give in and reduce their tariffs on American-made products. Using Meng as a bargaining chip is not the typical way to negotiate, but in Trump’s political world it is.

Huawei is a strong presence in the world’s technological sector. The company makes smartphones, but it also supplies internal parts for other smartphone makers. Some of the tech companies say Huawei has a habit of stealing intellectual property. And other companies believe Huawei spies for the Chinese government.

The felony charges against Huawei won’t help Trump’s plan to get China to cry uncle and drop tariffs on American-made vehicles. But it will raise the level of anxiety in the stock market, according to the New York Times.

The U.S. economy is not in great shape thanks to the government shutdown and the pending trade war with China. The news that Meng and her company faces charges in the United States will hurt the negotiations, according to Chinese scholars. President Xi isn’t afraid of Trump, according to Chinese news reports. He knows China has the power and the resolve to beat Trump at his own game. But Trump doesn’t believe China can do that.

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