The arrest of Huawei’s chief financial officer Meng Wanzhou could be a harbinger of more challenges ahead for the Chinese telecommunications equipment company, analysts said on Friday.
Ms Meng, who is the daughter of the Shenzhen technology giant's founder Ren Zhengfei, was arrested in Vancouver last weekend on suspicion of violating US trade sanctions against Iran.
"The investigation of Huawei could be a prelude to further action against the firm and its senior officials,” said Eurasia Group, a political risk consultancy firm.
“It remains unclear if the US department of justice has enough evidence to mount a case similar to the one that led to the denial ban on ZTE, but the action against Meng suggests it may be able to propose similar action."
Eurasia said that the impact of a similar and sudden denial ban of the type placed on ZTE would be much wider, given that Huawei equipment is more widely used.
ZTE, China’s second-largest telecoms equipment maker, agreed to pay $1.4 billion in fines to the US after Washington slapped a ban in April on purchases of essential American components for seven years to punish the company for violations of US sanctions against Iran.
"I think it [the arrest] has certainly come at a bad time and it will undo any goodwill coming out of G20 agreement between Trump and Jinping," Cailin Birch, global commodities analyst at UK-based Economist Intelligence Unit, told The National, adding "it will definitely threaten the ongoing negotiations."
“It’s different from the ZTE case because that was a civil case, but the arrest has been made on criminal charges which means China cannot really bring the arrest issue as part of negotiation process. It’s a different level of severity.”
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Read more:
Huawei CFO arrest outrages China and rattles markets
Exclusive: Huawei targets 20% increase in smartphone revenues next year
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Ms Birch said that over the past few months Canada has also become equally concerned over rising competition and investments from China.
“Canada has become increasingly aware of its own security and tech-related investments coming from China. A few of such attempts (investments) have been blocked in the past few months.”
The Chinese Embassy in Canada condemned the detention of Ms Meng denying she had violated Chinese or US laws.
“Message is clear - the US is closing the borders to many Chinese technology companies," said Neil Campling, co-head Global Thematic Group at Mirabaud Securities. "Also, the US and Canada are much more closer and aligned now than they were in recent months.
“However, there is another aspect to it... there is an intelligence sharing agreement called Five Eyes consisting of five countries: US, UK, Canada, Australia and New Zealand. The Five Eyes alliance aims to collect and share intelligence around technology. So it is possible that this action [the arrest] could be related to that Five Eyes agreement,” he said.
PREMIER LEAGUE FIXTURES
Tuesday (UAE kick-off times)
Leicester City v Brighton (9pm)
Tottenham Hotspur v West Ham United (11.15pm)
Wednesday
Manchester United v Sheffield United (9pm)
Newcastle United v Aston Villa (9pm)
Norwich City v Everton (9pm)
Wolves v Bournemouth (9pm)
Liverpool v Crystal Palace (11.15pm)
Thursday
Burnley v Watford (9pm)
Southampton v Arsenal (9pm)
Chelsea v Manchester City (11.15pm)
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
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Price: From Dh149,900
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Sri Lanka-India Test series schedule
- 1st Test India won by 304 runs at Galle
- 2nd Test Thursday-Monday at Colombo
- 3rd Test August 12-16 at Pallekele
TRAP
Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue
Director: M Night Shyamalan
Rating: 3/5
FA Cup quarter-final draw
The matches will be played across the weekend of 21 and 22 March
Sheffield United v Arsenal
Newcastle v Manchester City
Norwich v Derby/Manchester United
Leicester City v Chelsea
Killing of Qassem Suleimani
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The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
Mobile phone packages comparison
PROFILE BOX
Company name: Overwrite.ai
Founder: Ayman Alashkar
Started: Established in 2020
Based: Dubai International Financial Centre, Dubai
Sector: PropTech
Initial investment: Self-funded by founder
Funding stage: Seed funding, in talks with angel investors
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1am – Early prelims
2am – Prelims
4am-7am – Main card
7:30am-9am – press cons
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Producer: Maddock Films, Jio Movies
Director: Amar Kaushik
Cast: Rajkummar Rao, Shraddha Kapoor, Pankaj Tripathi, Aparshakti Khurana, Abhishek Banerjee
Rating: 3.5
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
UAE currency: the story behind the money in your pockets
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Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
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COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
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