Canadians released from Chinese jail after Huawei CFO freed over US fraud charges

New York: Two Canadians detained in China on spying charges have been released from prison and flown out of the country, Prime Minister Justin Trudeau announced Friday, hours after a top executive of Chinese communications giant Huawei Technologies resolved criminal charges against her in a deal with the US Justice Department.

Canadians Michael Kovrig and Michael Spavor were arrested in China in December 2018, shortly after Canada arrested Meng Wanzhou, Huawei’s chief financial officer and the daughter of the company’s founder, on a US extradition request. Many countries labeled China’s action “hostage politics”.

The deal with Meng Wanzhou, Huawei’s chief financial officer and the daughter of the company’s founder, Ren Zhengfei, calls for the Justice Department to dismiss fraud charges late next year in exchange for Meng accepting responsibility for misrepresenting her company’s business dealings in Iran.

“Over the last three years my life has been turned upside down”: Meng Wanzhou reads a statement outside the court in Vancouver. Credit: Bloomberg

The arrangement, known as a deferred prosecution agreement, resolves a years-long legal and geopolitical tussle that involved not only the US and China but also Canada, where Meng has remained since she was arrested at Vancouver’s airport in December 2018.

As part of the deal, disclosed in federal court in Brooklyn, the Justice Department agreed to dismiss the fraud charges against Meng in December 2022 — exactly four years after her arrest — provided that she complies with certain conditions, including not contesting any of the government’s factual allegations. The Justice Department also agreed to drop its request that Meng be extradited to the US, which she had vigorously challenged, ending a process that prosecutors said could have persisted for months.

In this courtroom sketch drawn from a video feed, Meng Wanzhou, chief financial officer of Huawei Technologies, appears via video before Judge Ann Donnelly, inset on right, for her court proceeding in Brooklyn Federal Court. Credit: AP

Meng’s attorneys said they fully expect the charges to be dismissed in 14 months. “We’re very pleased that in the meantime she can go home to her family,” said defence lawyer Michelle Levin.

After appearing via videoconference for her New York hearing, Meng made a brief court appearance in Vancouver, where she has been out on bail and living in her mansion since her arrest. The court released her from all her bail conditions and she is now free to leave the country.

Outside the courtroom, Meng thanked the Canadian government for upholding the rule of law, expressed gratitude to the Canadian people and apologised “for the inconvenience I caused.”

“Over the last three years my life has been turned upside down,” she said. “It was a disruptive time for me as a mother, a wife and as a company executive. But I believe every cloud has a silver lining. It really was an invaluable experience in my life. I will never forget all the good wishes I received.”

Shortly afterward, Meng left on an Air China flight for Shenzhen, China, the location of Huawei’s headquarters.

Once Meng was in the air, Trudeau held a short press conference to reveal the Canadians were also on their way home, after more than 1000 days in Chinese jails on spying charges.

“Twelve minutes ago Michael Kovrig and Michael Spavor left Chinese airspace on their way back home,” Trudeau told reporters in brief remarks.

“These two men have been through an unbelievably difficult situation, but it is inspiring and it is good news for all of us that they are on their way home to their families.”

Although Beijing insisted throughout that the two cases were not linked, Trudeau’s Liberal government accused China of engaging in hostage diplomacy. Trudeau was not asked whether the two countries had struck a bilateral deal.

“I want to thank our allies and partners around the world in the international community who have stood steadfast in solidarity with Canada and with these two Canadians,” he said.

Huawei is the biggest global supplier of network gear for phone and internet companies. It has been a symbol of China’s progress in becoming a technological world power — and was blocked from providing 5G networks in Australia, kickstarting the now-entrenched trade and diplomacy dispute between Canberra and Beijing. Some analysts say Chinese companies have flouted international rules and norms and stolen technology.

The case against Meng stems from a January 2019 indictment from the Trump administration Justice Department that accused Huawei of stealing trade secrets and using a Hong Kong shell company called Skycom to sell equipment to Iran in violation of US sanctions. The indictment also charged Meng herself with committing fraud by misleading the HSBC bank about the company’s business dealings in Iran.

The indictment came amid a broader Trump administration crackdown against Huawei over US government concerns that the company’s products could facilitate Chinese spying. The administration cut off Huawei’s access to US components and technology, including Google’s music and other smartphone services, and later barred vendors worldwide from using US technology to produce components for Huawei.

Donald Trump’s government barred Huawei vendors worldwide from using US technology. Credit: AP

The Biden White House, meanwhile, has kept up a hard line on Huawei and other Chinese corporations whose technology is thought to pose national security risks.

Huawei has repeatedly denied the US government’s allegations and security concerns about its products.

Meng had long fought the Justice Department’s extradition request, with her lawyers calling the case against her flawed and alleging that she was being used as a “bargaining chip” in political gamesmanship. They cited a 2018 interview in which then-President Donald Trump said he’d be willing to intervene in the case if it would help secure a trade deal with China or aid US security interests.

Last month, a Canadian judge held off on ruling whether Meng should be extradited to the US after a Canadian Justice Department lawyer wrapped up his case saying there was enough evidence to show she was dishonest and deserved to stand trial.

AP, Reuters

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