Tuesday , October 4 2022

The arrest of Shocking & # 39; of Huawei CFO in Canada threatens to upgrade trade load between the United States and China



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On the same day, hit Donald Trump and Xi Jinping in Argentina with a commercial war luck, about 7,000 miles away Canadian authorities have made an arrest that is now threatening to make the conflict between the United States and China much worse.

The U.S. attempts to extradition Wanzhou Meng, chief financial officer of Huawei Technologies Co., after convincing Canada arrested on December 1, which is likely to be associated with punishment against Iran. China responded immediately after Wednesday, asking that both countries move to Meng for free. Later, the foreign ministry said that she was still waiting for details of why she was arrested, and said trade negotiations should continue.

This timing and mode is stunning. The OMG phrase does not often appear in our internal email discussions

Andrew Gilholm, director of North Asia analysis at Risk Management Group

Meng is the founder of Huawei, a national champion at the forefront of Xi's efforts to China to be self-sufficient in strategic technologies. Although the U.S. Allies regularly ask for outlaw drug lords, arm dealers and other offenders, such a big Chinese army arrest is arrested in this way – if it does not appear in the foreground.

"This timing and way is stunning," said Andrew Gilholm, director of North Asia analysis at the Risk Management Group, by telephone. "The OMG phrase does not often appear in our internal email discussions."

Global stock markets attacked a third day running on Thursday as the executive's arrest feeds the fears of new tensions between the two economic powers

At present it is not clear what role Trump plays at Meng's arrest, or if it interferes at some point. The leader of the U.S. spent last days trying to convince the world – and equity investors are for a reason – that China has agreed to major concessions, including reducing or eliminating tariffs on US cars. The stocks were seen across Asia on Thursday.

Newspaper containing a front page story for the meeting between President U.S. Donald Trump and Chinese President Xi Jinping in a news stand in Beijing on December 3. The headline says that both leaders agreed not to increase tarrifs. China's state-of-the-art media calls on the US military war as "momentous" but warned about complex discussions in front of them.

Greg Baker / AFP / Getty Images

Analysts said that it was more likely that the case would proceed apart from trade talks as part of Trump's attempts to prosecute prosecutions against Chinese companies that are economically spying and punishing penalties. In October, the U.S. Belgium has extradited a Chinese intelligence officer accused of stealing trade secrets by U.S. companies. – unprecedented development.

In either way, China is almost certain to see Meng's arrest as a considerable deal of war in the trade war that will cause wider Cold War fears between the world's largest economies. As part of trade talks, Trump has demanded China to provide government support to strategic sectors, including artificial intelligence and robotics as part of the "Made in China 2025" policy. .

& # 39; New Game & # 39;

"It will definitely complicate the discussions and may believe that this has been done to increase the pressure during this 90-day period," said Dennis Wilder, former Chinese CIA analyst and senior director of Asia at the Council National Security under President George W. Bush.

"This sends a signal that there is a new game," says Wilder for the recent US arrests. "They try to stop spying Chinese and make it clear that there are real results."

The profile of the chief financial officer of Huawei Meng Wanzhou is displayed on a Huawei computer in a Huawei store in Beijing, China on December 6.

Canadian Press / AP-Ng Han Guan

Any better company may not specify the perceived trade threat than Huawei. Apple Inc. has been reversed in mobile phones and aims to surpass Samsung Electronics Co. in targeting sales of US $ 102.2 billion this year – more than Boeing Shooting for the main wireless networks in the fifth generation and prepare to take part in the largest American chip makers.

That is why Trump's administration called its name in blocking the Qualcomm Inc.-Broadcom Inc. who would have been the biggest deal ever, saying he would lead the lead in 5G to China. Huawei has been blocked since selling its gear in Australia and New Zealand, frozen out of Korea's contract, and faces US-led competition even in Papua New Guinea.

The latest US actions against Huawei may be even more significant. Although the company has made developments in developing its own microchips, it still relies on American equipment to make its networking and smartphones. The company ZTE Corp, another Chinese technology company, has almost fallen due to U.S. penalties. for banning Iran's penalties before Trump rescued following a request from Xi.

The ZTE case showed China leaders that they needed to become independent from the United States in terms of critical technologies such as semiconductors and network infrastructure, according to Graham Webster, co-ordinating editor of DigiChina in the New America think tank.

"What makes Huawei important is that she is a leader in developing technologies that will make China less reliant on US or European suppliers," he said. "The targeting of Huawei by trying to extradition a chief executive is a big move by the US government, whether it has co-ordinated or not."

For some analysts in China, it shows that the United States national security equipment is not interested in breaking an agreement, no matter what Trump thinks.

"Their goal is to collapse with China," said Wang Yong, a professor at the School of International Studies at the University of Peking. "Discussions like Trump and Wall Street."

With a file from Reuters

Bloomberg.com

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