Published: Thu, December 06, 2018
Economy | By

Markets slump after arrest of the Huawei executive Meng Wanzhou

Markets slump after arrest of the Huawei executive Meng Wanzhou

The report did not say what Huawei might be suspected of.

In 2017, the company had C$123.79 billion in revenue, ranking the 72nd on the Fortune Global 500. The index was down for its third day in a row, after dropping earlier this week on concern over an economic slowdown in the United States. Huawei issued a statement saying Meng was changing flights in Canada when she was detained "on behalf of the United States of America" to face "unspecified charges" in NY.

"People are just as anxious about further adjustments in the USA stock market, the inverted yield curve and a slowing economy there", he said.

Both Huawei and ZTE Corp. have faced trouble with the USA and other governments over dealings with Iran and fears the Chinese companies' equipment might be used for spying.

Tech .SX8P shares also fell 2.9 percent. "And it provides the capacity to conduct undetected espionage".

Huawei, for its part, has denied sharing information with the Chinese government, as has ZTE. The Justice Department also believes Huawei is violating USA sanctions against Iran because of the American components inside its products.

China's President Xi Jinping was forced to intervene to save ZTE from bankruptcy.

Ericsson ERICb.ST rose 1.5 percent, while the Paris-listed shares of Nokia NOKIA.PA added 0.1 percent. The US has long suspected Huawei of involvement in Iranian sanctions violations and launched a criminal probe in April.

Meng's importance at Huawei became apparent in 2011, when she was first named as a board member.

A Huawei spokesperson said Meng faces unspecified charges in the Eastern District of NY. Chinese technology has been a particular bugbear for the USA president, who has justified imposing tariffs on Chinese imports with allegations of intellectual property theft by Chinese companies. "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 firm said in a statement.

A high-school dropout, Meng stated off as secretary for the group before working her way to the top.

While her brother, Meng Ping, as well as her father's younger brother and his current wife all work at Huawei and related companies, none has held such senior management roles.

But it is unlikely they will end up running the company when their father steps down. He also said the Iran allegations are very damaging to Huawei and said China will push back hard. "Thus, we will never be in the running of the successor race". The two only met last weekend to eke out a truce in their growing trade conflict. "Don't act like a despicable rogue", Tweeted Hu Xijin, editor of the Global Times, a nationalistic tabloid run by the ruling Communist Party's People's Daily.

The broad market decline came as the arrest of a senior Chinese technology executive overshadowed some positive comments on trade from Beijing, threatening to worsen trade tensions between the US and China.

Chinese foreign ministry spokesman Geng Shuang on Thursday called Meng's arrest a violation of human rights and demanded the "immediate release" of the 46-year-old executive, who also goes by the name Sabrina.

"Investors are back in risk-off mode with markets falling in the United Kingdom, mainland Europe and across Asia".

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