China Says It Didn't Know Countries Have Had Security Problems With Huawei

China calls on Canada to free Huawei CFO or face consequences

China says Canada's detention of Huawei exec 'vile in nature'

Though China's technology sector is still reliant on certain U.S. exports like microchips, Beijing wants to transform the country into a global tech leader rivalling the United States in a plan dubbed "Made in China 2025".

Meng Wanzhou, Huawei's global chief financial officer, was arrested in Canada on 1 December and faces extradition to the United States, which alleges that she covered up her company's links to a firm that tried to sell equipment to Iran despite sanctions, according to Reuters.

On Friday, the USA began a market-shaking case against the Chinese telecoms giant in a Vancouver courtroom, alleging that Meng had hidden ties between Huawei and a company called Skycom that did business in Iran, said a lawyer representing Canada during the court hearing.

In Canadian court papers made public on Friday, an investigation by US authorities found Huawei operated Skycom as an "unofficial subsidiary" to conduct business in Iran.

Yucheng reportedly told Branstad on Sunday that the US had made an "unreasonable demand" on Canada to detain Meng. News of the arrest also shook stock markets globally last week.

In the middle of the row, which could potentially escalate US-China trade tensions, Beijing summoned Canadian and US ambassadors demanding that they clarify the reason for placing Meng under arrest. Martin said Meng, who has agreed to wear an ankle monitor, will cover the expenses.

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A judge in the US District Court for the Eastern District of NY issued a warrant for Meng's arrest on August 22, it was revealed at the hearing Friday. The hearing will resume Monday at 1 p.m. ET.

Meng said that she had suffered "numerous health problems" during her life, including surgery for thyroid cancer in 2011. Outside court a man and woman held a sign that read "Free Ms. Meng".

China has threatened Canada with grave consequences if a top executive at Huawei Technologies not immediately released, calling her arrest as she changed planes in Canada "unreasonable, unconscionable and vile in nature".

The statement warned that Beijing would make an unspecified "further response" in light of the U.S. actions.

The move follows the summoning of Canadian Ambassador John McCallum on Saturday over Meng's detention and a similar protest.

"China strongly urges the Canadian side to immediately release the detained person, and earnestly protect their lawful, legitimate rights, otherwise Canada must accept full responsibility for the serious consequences caused". The hearing continues Monday.

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Is uncertainty over US trade talks with China casting a shadow over what has been a bright spot for the Trump administration? US indexes recovered some ground in afternoon trading after a sharp morning drop. "That's the price of dealing with a country like China".

Such movements are nearly certainly countenanced by the ruling Communist Party. President Donald Trump's trade team sought to insulate talks with China from the growing dispute on Sunday, while officials in Beijing have debated the pros and cons of retaliation.

Along with Huawei's growing prominence has come increased scrutiny from the US and its allies over fears its equipment could be used for spying, with Kyodo News reporting that Japan could join Australia and New Zealand in keeping Chinese equipment away from their phone networks.

"The U.S. has been pressuring the other "Five Eyes" to limit the use of Huawei technology", the article said.

"We believe this is inhumane", Foreign Ministry spokesman Lu Kang said at a regular press briefing. "I sure hope so", Rubio said.

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