China frees Canadians after Huawei boss released

© CRISIGROUP/AFP via Getty Images COMBO-CHINA-CANADA-US-COURT-DIPLOMACY

Two Canadians detained in China on spying charges have been released from prison hours after a top boss at Huawei resolved criminal charges against her in a deal with the U.S. 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 U.S. extradition request.

Many countries labeled China’s action “hostage politics.”

The deal with Meng 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.

Trudeau called a news conference Friday night about an hour after Meng’s plane left Canada for China.

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

The deal was reached as President Joe Biden and Chinese counterpart Xi Jinping have sought to damp down signs of public tension — even as the world’s two dominant economies are at odds on issues as diverse as cybersecurity, climate change, human rights and trade and tariffs.

Biden said in an address before the U.N. General Assembly earlier this week that he had no intention of starting a “new Cold War,” while Xi told world leaders that disputes among countries “need to be handled through dialogue and cooperation.”

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 U.S., which she had vigorously challenged, ending a process that prosecutors said could have persisted for months.

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 defense 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.

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 a subject of U.S. security and law enforcement concerns.

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 U.S. 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 U.S. government concerns that the company’s products could facilitate Chinese spying.

The administration cut off Huawei’s access to U.S. components and technology, including Google’s music and other smartphone services, and later barred vendors worldwide from using U.S. technology to produce components for Huawei.

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 U.S. 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 U.S. security interests.

Last month, a Canadian judge held off on ruling whether Meng should be extradited to the U.S. 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 in the U.S.

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