China ramps up pressure

Photo: The Canadian Press

Chinese newspaper with the headline "China outcry against U.S. on the detention of Huawei's chief financial officer."

China raised the pressure on the United States and Canada as a bail hearing for a top Chinese technology executive resumed Monday in Vancouver.

Meng Wanzhou, the chief financial officer of Chinese telecommunications giant Huawei and daughter of its founder, was detained at the request of the U.S. during a layover at the Vancouver airport on Dec. 1 — the same day that Presidents Donald Trump and Xi Jinping of China agreed to a 90-day cease-fire in a trade dispute that threatens to disrupt global commerce.

China formally protested to the ambassadors of both Canada and the United States over the weekend.

The U.S. alleges that Huawei used a Hong Kong shell company to sell equipment in Iran in violation of U.S. sanctions. It also says that Meng and Huawei misled American banks about the company's business dealings in Iran.

Her arrest has fueled U.S.-China trade tensions at a time when the two sides are seeking to resolve a dispute over Beijing's technology and industrial strategy. Both sides have sought to keep the issues separate, at least so far, but the arrest has roiled markets.

David Martin, Meng's lawyer, said he would call a representative from a surveillance company and an electronic monitoring company to help ensure Meng won't flee if released. Martin said Meng, who had agreed to wear an ankle monitor, will cover the expenses and said the surveillance company would detain her if she breaches bail conditions.

The hearing has sparked widespread interest, and the courtroom was packed again Monday with media and spectators, including some who came to support Meng. One man in the courtroom gallery brought binoculars to have a closer look at Meng, her lawyers and the prosecution team.

Over the weekend, China's Vice Foreign Minister Le Yucheng summoned Canadian Ambassador John McCallum and U.S. Ambassador Terry Branstad.

Le warned both countries that Beijing would take steps based on their response. Asked Monday what those steps might be, Chinese Foreign Ministry spokesman Lu Kang said only that "it totally depends on the Canadian side itself."

B.C. has already cancelled a trade mission to China amid fears China could detain Canadians in retaliation for Meng's detention.

Huawei, the biggest global supplier of network gear for phone and internet companies, has become the target of U.S. security concerns because of its ties to the Chinese government. The U.S. has pressured other countries to limit use of its technology, warning they could be opening themselves up to surveillance and theft of information.