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US, China Reach Truce in Trade War; Chinese Executive Arrested

As the trade dispute is temporarily resolved, business world is suddenly rocked by new US accusations against China

A+court+sketch+of+Meng+Wanzhou+during+her+bail+hearing+in+Vancouver%2C+Canada.
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US, China Reach Truce in Trade War; Chinese Executive Arrested

A court sketch of Meng Wanzhou during her bail hearing in Vancouver, Canada.

A court sketch of Meng Wanzhou during her bail hearing in Vancouver, Canada.

Photo by Reuters

A court sketch of Meng Wanzhou during her bail hearing in Vancouver, Canada.

Photo by Reuters

Photo by Reuters

A court sketch of Meng Wanzhou during her bail hearing in Vancouver, Canada.

Natalie Pearson, Entertainment Editor

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On December 1, United States President Donald Trump and Chinese President Xi Jinping met at the 2018 G20 Buenos Aires summit. The two agreed to a 90-day truce in the US-China trade war, in which both countries would delay their planned increases in tariffs to allow time for them to negotiate their trade disputes.

“Failure to strike a deal would have seen tariffs on 200 billion dollars worth of Chinese goods rise from 10 percent to 25 percent at the start of next year,” said the Trump Administration, according to the BBC. “It would have also opened the way for tariffs on additional Chinese goods.”

Meanwhile, that very same day in Vancouver, Canada, top Huawei executive and founder’s daughter Meng Wanzhou was detained at the request of US authorities.

Huawei is a Chinese tech company that sells smartphons and telecommunications equipment. It’s the world’s second-largest cellphone producer, selling more phones than Apple.

Meng, the company’s chief financial officer, faces extradition to the US and was accused of helping Huawei cover up violations of US sanctions on Iran. More specifically, using a Huawei subsidiary called Skycom to evade these sanctions from 2009 to 2014. She reportedly publicly misrepresented Skycom as a separate company.

On Friday, December 7, during Meng’s court hearing in Canada, the court was told that she could face up to 30 years in prison in the US if found guilty.

On the weekend of December 8-9, Chinese authorities summoned the ambassadors of Canada and the US to protest Meng’s arrest, demanding her release.

The Chinese Foreign Ministry described Meng’s detention in Vancouver as “lawless, reasonless and ruthless” according to CNN. China’s vice minister of foreign affairs, Le Yucheng, made an official statement Sunday, warning Canada of “serious consequences” if they did not release Meng.

Le also said China “would like the United States to revoke the arrest warrant against Meng and allow her to be freed.”

As of Tuesday, December 11 Meng has not been extradited to the US nor has she been released. There are fears that the arrest could disrupt trade negotiations between the United States and China, although this is unlikely.

Update: As of Wednesday, December 12 Meng has been released on bail in Canada.

Natalie Pearson

Natalie became a member of the Flightline in August of 2017. She is a junior this year, involved in band. Outside of school, she enjoys watching movies and playing video games. You can email her at [email protected]

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