Markets slump after arrest of the Huawei executive Meng Wanzhou

Marco Green
December 6, 2018

"Wanzhou Meng was arrested in Vancouver on December 1".

Markets rallied on Monday on news that Trump and Xi had agreed at the summit over the weekend to a temporary, 90-day stand-down in the two nations' escalating trade dispute.

The lingering trade dispute has deepened investors' worries that the prospects for global economic and corporate earnings growth could be dimming. Traders have been left rattled after the arrest of a top executive at Chinese tech giant Huawei, which has sparked fears of the US-China trade war ceasefire could become unhinged.

"As there is a publication ban in effect, we can not provide any further detail at this time", department spokesperson Ian McLeod said in a statement to the newspaper.

Details of the arrest have not been released, but the United States has applied to extradite CFO Meng Wanzhou from Vancouver, with a bail hearing set for tomorrow.

Huawei itself has been increasingly on the rocks with the USA for the past year.

The company also said it was "not aware of any wrongdoing" by Meng.

There are situations "where the external rules are clear-cut, and there's no contention, but the company is totally unable to comply within actual operations", Meng reportedly said. China's response has been one of anger, claiming that its citizen's free rights are being violated.

"The Chinese side firmly opposes and strongly protests over such kind of actions which seriously harmed the human rights of the victim", the diplomatic mission said in a statement.

A US Justice Department spokesman declined to comment. In April, China appealed to Washington to avoid damaging business confidence following the Wall Street Journal report that USA authorities were investigating whether Huawei violated sanctions on Iran amid spiraling technology tensions.

Geng said the USA and Canada haven't provided reasons for Meng's detention.

Washington had previously moved to constrain Huawei's business dealings in the U.S. The government cited concerns over Huawei's close ties to the Chinese government, arguing this made it a security risk.

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

"That's something we should be watching out for". "It's a prominent member of their society and it's a company that really embodies China's quest for global recognition as a technology power".

Mulroney said Canada should be prepared for "sustained fury" from the Chinese and said it will be portrayed in China as Canada kowtowing to Trump.

Shares continued to dive despite a statement from China, after the markets had closed there, to confirm that Beijing still planned to "immediately implement" the terms of its trade truce - beginning with farm goods, energy and cars.

Stocks on both the Chinese mainland and in Hong Kong tumbled after news of the arrest, with tech firms taking the brunt of the selling of shares.

"She was in transit though Vancouver".

Other reports by Click Lancashire

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