Fresh Documents link Huawei technologies to Front Firms in Iran, Syria

Marco Green
January 11, 2019

"We have made solemn representations to Canada and the U.S., demanding that both parties immediately clarify the reasons for the detention, and immediately release the detainee to protect the person's legal rights", Chinese foreign ministry spokesman Geng Shuang told a regular press briefing in Beijing.

Meng now faces legal limbo for years. China's communist government not only called the move illegal and malicious but publicly accused Canada of being a USA puppet and getting involved in what it perceives is a purely political power play. The Chinese are certain Canada is doing the USA bidding, holding Meng as a pawn in a fragile trade war truce between the world's two largest economies.

As of now, the sanctions include an embargo on dealings with the country (implemented by the US,) and a ban on selling aircraft and fix parts to Iranian companies.

Recently, the USA has reintroduced a number of their sanctions on Iran that it had relaxed after the 2015 nuclear deal.

"China is working creatively to undermine our national security interests, and the United States and our allies can't sit on the sidelines", said US Senator Ben Sasse in a statement linking the arrest to US sanctions against Iran.

Prohibitions are still in place with the export to Iran of any items, materials, equipment, goods or technology related to uranium enrichment, and large number of goods related to uranium. Several countries have followed suit.

Prosecutors can not just request that their foreign counterparts arrest and turn over an individual. A Justice Department spokesman in Washington declined to comment.

The OIA's lines of communications with authorities in other countries takes on the task of extradition from other countries in order to arrest those desired individuals. That criticism is largely based on President Trump's recent remarks about how he would be willing to step in and intervene in Ms. Meng's case if he thought doing so would provide the USA with extra leverage in its ongoing trade negotiations with China.

The arrest stirred tensions just as the United States and China agreed to a ceasefire in their trade spat while negotiators seek a deal within three months.

Huawei claimed that the companies were independent from them but recent findings show inextricable ties between Huawei and the firms.

In other revelations, the Skycom manager in Iran identified as a Huawei executive has been named as Shi Yaohong. One source told Reuters that Canicula did business in Syria, another country affected by us sanctions, on behalf of Huawei. One is a telecom equipment seller that operated in Tehran; the other is that firm's owner, a holding company registered in Mauritius. Ltd. for two years between 2008 and 2009.

New documents have been uncovered which allegedly show the close links between Chinese networking giant Huawei and two holding companies at the centre of of sanction busting allegations in Iran.

For her involvement Meng Wanzhou is facing possible charges of conspiracy to defraud financial institutions. The exact charges have not been made public. As a result of the deception, United States authorities say, banks unwittingly cleared hundreds of millions of dollars of transactions that potentially violated economic sanctions Washington had in place at the time against doing business with Iran.

USA authorities assert Huawei retained control of Skycom, using it to sell telecom equipment to Iran and move money out via the global banking system.

The revelations point towards the claim that since the sanctions went into effect, China became a virtual backdoor for telecommunication equipment for Iran.

In reality they simply changed hands from the parent company Huawei, to another of their proxies Canicula Holdings.

In addition to Iran, Canicula also operated in Syria as recently as October 2017, after US sanctions against that country were put in place. As far as Syria is concerned, what we've found was in fact, Canicula had an office in Damascus and that Huawei was apparently operating through it in part and we've discovered this because of a letter that a lawyer wrote to a middle eastern website.

Other reports by Click Lancashire

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