Stock Selloff Continues Amid Worries Over U.S.-China Tensions

Stock Selloff Continues Amid Worries Over U.S.-China Tensions

Arthur Kroeber, founder of Gavekal Dragonomics, said it was unlikely that Beijing would retaliate against the local US business community, whose interests have partly overlapped with China's in the trade war and been a source of leverage for Beijing.

Over the years, she has been director of the global accounting department, chief financial officer of Huawei Hong Kong and president of the accounting management department at the company.

Other pressures are weighing on the financial markets.

Lenovo has also come under attack in the United States for allegedly selling compromised computers that expose users to spying. That is widely seen as part of a broader effort by Washington to respond to intensifying competition with Chinese technology industries that Trump says benefit from improper subsidies and market barriers.

On the same day Donald Trump and Xi Jinping struck a trade war truce in Argentina, some 7,000 miles away Canadian authorities made an arrest that now threatens to make the U.S.

The arrest is nearly certain to exacerbate tensions between President Donald Trump and President Xi Jinping at a highly sensitive time.

News of her detention rippled through stock markets in Asia, particularly Shanghai and Hong Kong, with tech firms among the worst hit. On Wednesday, China's embassy in Canada said it resolutely opposed the arrest and called for her immediate release.

"Detaining a person without providing an explanation has undoubtedly violated her human rights", Geng said, adding the Chinese government "has made clear our solemn positions to the USA and Canada".

The probe of Huawei is similar to one that threatened the survival of China's ZTE Corp, which pleaded guilty in 2017 to violating USA laws that restrict the sale of American-made technology to Iran.

A newspaper featuring a front page story about the meeting between U.S. President Donald Trump and Chinese President Xi Jinping at a news stand in Beijing on December 3. But US officials also worry more broadly that Chinese plans for state-led creation of Chinese champions in robotics, artificial intelligence and other fields might erode US industrial leadership. He also said the Iran allegations are very damaging to Huawei and said China will push back hard. The Shenzhen-based company has overtaken Apple as the No. 2 global smartphone maker, shipping more than 52.2 million units in the third quarter, according to research analyst Gartner Inc. "The incident could turn out to be a breaking point", Zhu said. Canada and the United Kingdom have not done so, although Britain's BT Group said it would remove Huawei equipment from sensitive parts of its 4G network.

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Huawei, the world's biggest network equipment maker ahead of Ericsson and Nokia, has said Beijing has no influence over its operations.

This year, the Treasury and Commerce Department also asked the Justice Department to investigate Huawei for possibly violating economic sanctions against Iran, according to an official who spoke on the condition of anonymity because he was not authorized to discuss the investigation. Washington has previously raised concerns about the Chinese conglomerate because of its links to Beijing's government. ZTE, China's second-largest telecoms equipment maker, agreed to pay $1.4 billion in total fines to the USA after Washington slapped a ban in April on purchases of essential American components for seven years to punish the company for Iran sanctions violations.

New Zealand turned down Huawei equipment from being used in its rollout of 5G network over national security concerns, after Australia imposed a similar ban on both Huawei and fellow communications firm ZTE.

She has held the positions of director of the worldwide accounting department, CFO of Huawei Hong Kong, and president of the accounting management department, according to the website.

Meng was arrested in Vancouver, Canada, on Sunday, and now faces extradition to the United States.

A U.S. Justice Department spokesman declined to comment.

"Huawei complies with all applicable laws and regulations where it operates, including applicable export control and sanction laws and regulations of the UN, US and European Union", the company said in a statement.

What are the Iran sanctions?

"Relations between the USA and China were supposed to be on the mend after a productive G20".

The company's website also lists Meng as its deputy chairwoman and The Associated Press reports that she is the daughter of company founder Ren Zhengfei.

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