China telecoms giant Huawei CFO arrested in Canada

In this July 4, 2018, file photo, the Huawei logo is seen at a Huawei store at a shopping mall in Beijing. (AP)
Updated 06 December 2018
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China telecoms giant Huawei CFO arrested in Canada

  • US authorities have been probing Huawei since 2016 for allegedly shipping US-origin products to Iran in violation of US export and sanctions laws

VANCOUVER/WASHINGTO: Canada has arrested Chinese telecoms giant Huawei’s global chief financial officer in Vancouver, where she is facing extradition to the United States, Canada’s Department of Justice said on Wednesday.
The arrest is related to violations of US sanctions, a person familiar with the matter said. Reuters was unable to determine the precise nature of the violations.
Sources told Reuters in April that US authorities have been probing Huawei, one of the world’s largest makers of telecommunications network equipment, since at least 2016 for allegedly shipping US-origin products to Iran and other countries in violation of US export and sanctions laws.
Meng Wanzhou, who is one of the vice chairs on the company’s board and the daughter of company founder Ren Zhengfei, was arrested on Dec. 1 and a court hearing has been set for Friday, a Canadian Justice Department spokesman said.
Huawei confirmed the arrest in a statement and said that it has been provided little information of the charges, adding that it was “not aware of any wrongdoing by Ms. Meng.”
China’s embassy in Canada said it resolutely opposed the arrest and called for Meng’s immediate release.
The arrest could drive a wedge between China and the United States just days after President Donald Trump and President Xi Jinping held a meeting in Argentina where they agreed to steps to resolve a trade war.
The sources said in April the US Justice Department probe is being run out of the US attorney’s office in Brooklyn.
The US Justice Department on Wednesday declined to comment. A spokesman for the US attorney’s office in Brooklyn also declined to comment.
The probe of Huawei is similar to one that threatened the survival of China’s ZTE Corp. , which pleaded guilty in 2017 to violating US laws that restrict the sale of American-made technology to Iran.
Earlier this year, the United States banned American firms from selling parts and software to ZTE, which then paid $1 billion this summer as part of a deal to get the ban lifted.
In January 2013, Reuters reported that Hong Kong-based Skycom Tech Co. Ltd, which attempted to sell embargoed Hewlett-Packard computer equipment to Iran’s largest mobile-phone operator, had much closer ties to Huawei than previously known.
Meng, who also has gone by the English names Cathy and Sabrina, served on the board of Skycom between February 2008 and April 2009, according to Skycom records filed with Hong Kong’s Companies Registry.
Several other past and present Skycom directors appear to have connections to Huawei.
The news about the arrest comes the same day Britain’s BT Group said it was removing Huawei’s equipment from the core of its existing 3G and 4G mobile operations and would not use the Chinese company in central parts of the next network.
The handset and telecommunications equipment maker said it complies with all applicable export control and sanctions laws and US and other regulations.
The Huawei statement said Meng was detained when she was transferring flights in Canada.
Her arrest drew a quick reaction in Washington.
US Senator Ben Sasse praised the action and said that it was “for breaking US sanctions against Iran.” He added: “Sometimes Chinese aggression is explicitly state-sponsored and sometimes it’s laundered through many of Beijing’s so-called ‘private’ sector entities.”
US stock futures and Asian shares tumbled as news of the arrest heightened the sense a major collision was brewing between the world’s two largest economic powers, not just over tariffs but also over technological hegemony.
While investors initially greeted the trade cease-fire that was agreed in Argentina with relief, the mood has quickly soured on skepticism that the two sides can reach a substantive deal.
S&P500 e-mini futures were down almost 2 percent at one point in thin Asian morning trade on Thursday. 


Tesla rival Lucid Motors wants to build factory in Saudi Arabia

Updated 25 min 53 sec ago
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Tesla rival Lucid Motors wants to build factory in Saudi Arabia

  • Lucid Motors eyes production plant in Kingdom after raising more than $1bn from the Public Investment Fund
  • California-based electric-car maker hopes to sell first vehicles for more than $100,000 

LONDON: A US-based electric-vehicle company that raised more than $1 billion from Saudi Arabia wants to build a factory in the Kingdom, and says its mission to build “the best car in the world” is well underway. 

The California-based Lucid Motors is developing its first model, the Air, which it hopes to sell for more than $100,000 when it enters production in less than two years’ time. 

Financial backing from Saudi Arabia’s Public Investment Fund (PIF), announced last year, will allow Lucid to proceed with the development of the all-electric sedan, as well as fund the $240 million cost of building the first phase of its factory in the US.

Peter Rawlinson, chief technology officer at Lucid Motors — and a former engineer at rival Tesla — said the company wants to eventually build a production plant in Saudi Arabia, and sees a “long-term” partnership with the Kingdom.

“I can see a really bright future, with a tangible manufacturing facility or facilities,” Rawlinson told Arab News.

“We’d love to do that … We’re currently in a period where we are investigating all these options. 

“There is a vision that there will be some sort of production facility in the future.”

Rawlinson added that it is “early days” for such a plan, but said he sees many opportunities for electric vehicles in Saudi Arabia — not least, because of the abundant sunshine and potential for solar power.

“We are undertaking the appropriate studies, but I’m really excited about the potential of this. This partnership is huge for us; we can benefit the Kingdom of Saudi Arabia in a significant, meaningful and long-term manner,” he said. 

“One of the great assets of the Kingdom is its endless reserves of sunshine, and how that can be harvested with solar energy. We’re a battery-storage technology company; that’s a way we could contribute. We’re exploring a number of avenues along those lines.”

Lucid is positioning itself in the luxury market, and Rawlinson said its Air model is looking to compete with the likes of the Mercedes-Benz S-Class. The Lucid Air is the company’s first car, but Rawlinson said an initial public offering (IPO) could be on the cards to develop future models.

The engineer brushed off the idea of a competitive threat from Elon Musk’s Tesla, where he once worked as chief engineer for the Model S.

“We don’t see Tesla as a key, direct competitor. We see the German gasoline cars — the petrol engine cars … as our core competitive set,” he said. 

“I’ve spoken to many people … who would gladly buy an electric car but say they’re not going to give up their Mercedes-Benz to buy a Tesla because of the interior. You’ve only got to step inside a Tesla to realize it’s not true luxury.”