In 1987, Ren Zhengfei founded Huawei Technologies Co. Ltd. in China at a cost of about $5,000 US.
In 2017 Huawei reported revenue of about $92.5 billion US.
Meng Wanzhou, daughter of Ren, is currently serves at Huawei as Deputy Chairperson and Chief Financial Officer.
The United States contends that Huawei has violated US sanctions against Iran by exporting their telecommunication products to Iran.
At the request of the United States, Meng was arrested in Canada on the same day that President Trump and Chinese President Xi Jinping met in Buenos Aires to discuss the trade war.
The Guardian – The Guardian view on Huawei: the bigger story Editorial – Markets can be erratic beasts, as indicative of collective neuroses as collective wisdom. But it is not surprising that they reacted to Wednesday’s thunderbolt. Much remains unclear about Canada’s arrest of a powerful executive from Chinese telecoms behemoth Huawei at the request of the US. Whatever precisely happened, and however this plays out, it is a dramatic course of action against a company at the heart of Chinese technology ambitions – and the pushback against them. It comes in the midst of a trade war with the US and broader security fears about Chinese firms.
Huawei is the world’s largest telecoms equipment provider, and its second largest mobile phone manufacturer: it is a pillar of the Chinese economy. Its founder Ren Zhengfei is a former military officer; the arrested executive, Meng Wanzhou, is his daughter.
Note also the timing. She was arrested on 1 December: the day Xi Jinping and Donald Trump sat down to dinner in Buenos Aires. No one in China will see this as anything other than intensely political, whatever the truth of the matter. Diplomats have demanded her release and say she has broken no laws…
It needs to be noted that last year, the Chinese company known as ZTE did plead guilty to violating sanctions.
At first the US placed a ban on the sales of parts and software of the company, but later changed the ban to a one-time fine of $892 million.
The news of Meng’s arrest is already taking on international attention and is bound to further intensify the tensions that exist between the United States and China.
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