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Generational Dynamics World View
*** 7-Dec-18 World View -- Canada arrests the chief financial officer of China powerhouse Huawei

This morning's key headlines from GenerationalDynamics.com
  • Canada arrests the chief financial officer of China powerhouse Huawei
  • China reacts with fury at the arrest of Meng
  • English-speaking 'Five Eyes' countries are banning Huawei products

****
**** Canada arrests the chief financial officer of China powerhouse Huawei
****


[Image: g181206b.jpg]
Meng Wanzhou

At the request of the United States, Canadian police arrested Ms. Meng
Wanzhou (Sabrina Meng), the chief financial officer (CFO) China's
telecom powerhouse Huawei (WHA way) Technologies, which was founded by
her father Ren Zhengfei. Before founding Huawei, Ren was an officer
and engineer in China's People's Liberation Army (PLA).

According to the US Justice Department:

<QUOTE>"She is sought for extradition by the United States,
and a bail hearing has been set for Friday. As there is a
publication ban in effect, we cannot provide any further detail at
this time. The ban was sought by Ms. Meng."<END QUOTE>


Reports indicate that Huawei is alleged to have used the global
banking system to evade U.S. sanctions against Iran. In particular,
it's believed that Huawei used HSBC Holdings Plc to conduct illegal
transactions involving Iran. As CFO, Meng would be intimately
familiar with any such illegal transactions.

HSBC Bank plc is a London-based international banking and financial
services company. In 2012, HSBC paid a $1.92 billion fine for
violating US sanctions and money-laundering laws. HSBC is apparently
not under investigation in the Huawei allegations.

Meng was arrested on Saturday in Vancouver airport, as she was
changing planes. The arrest occurred at the same time that president
Donald Trump and China's president Xi Jinping were having a dinner
meeting that led to an agreement for a 90-day "ceasefire" in the
"trade war" between the two countries.

Since the arrest occurred shortly before the dinner meeting, there is
speculation that Trump timed the arrest to send a message to China and
to Xi. However, the dinner meeting was planned well in advance of the
arrest, and there would have been no way of predicting that Meng would
be changing planes in Vancouver at exactly that time. National
security advisor John Bolton says that he knew before the dinner that
Meng was being arrested, but said that he didn't brief Trump. Meng
may have been put onto a list of people subject to arrest at Canadian
airports months ago, but the fact that she happened to change planes
in Vancouver on Saturday appears to be purely happenstance.

ZTE is another Chinese company that has been severely sanctioned for
making illegal sales to Iran. The Trump administration heavily
sanctioned ZTE, to the extent that ZTE would have gone out of
business, costing hundreds of thousands of jobs in China, but Trump
relented after a personal plea from Xi.

Mainstream media and other politicians are almost universally baffled
by Trump's foreign policy actions, as I've pointed out many times.
But the policies all make complete sense when you understand that
Trump believes (correctly) that the US and China are headed for a
world war, and he's adopting policies that he believes will prevent
that outcome, even though Generational Dynamics predicts that a world
war will happen with 100% certainty, no matter what Trump does.

In the case of the "trade war" policy, Trump has described its purpose
as saving American jobs, which is true, but it also has the purpose of
throwing China off its game of relentless militarization and
preparation for war. However, it's an extremely risky policy because
it may actually trigger war if the Chinese panic. The 90-day freeze
gives the Chinese some breathing room, and keeps them from panicking.

For that reason, the happenstance arrest of Meng is actually a risk to
the ceasefire, since it could infuriate the Chinese to the point of
triggering an unwanted reaction, including the arrest of American
executives in China. It's possible that the Trump administration will
decide to de-escalate this situation quickly by returning Meng to
China as soon as possible. Globe and Mail (Toronto) and Reuters and Wired

****
**** China reacts with fury at the arrest of Meng
****


China's foreign ministry has demanded the Canadians and Americans
"immediately clarify the reason for the detention and release the
detainee, and earnestly protect the legal and legitimate rights and
interests of the person involved."

China's embassy in Canada posted the following:

<QUOTE>"At the request of the US side, the Canadian side
arrested a Chinese citizen not violating any American or Canadian
law. The Chinese side firmly opposes and strongly protests over
such kind of actions which seriously harmed the human rights of
the victim. The Chinese side has lodged stern representations with
the US and Canadian side, and urged them to immediately correct
the wrongdoing and restore the personal freedom of Ms. Meng
Wanzhou. We will closely follow the development of the issue and
take all measures to resolutely protect the legitimate rights and
interests of Chinese citizens."<END QUOTE>


It's always laughable when China talks about international law or
human rights, two things that the Chinese believe don't apply to them,
since they consider themselves superior to everyone else. My guess is
that Ms. Meng is being held in the equivalent of a suite in a five
star hotel. On the other hand, China is a country that kidnaps
children, harvests the organs of political prisoners, and has a
million ethnic Uighurs locked up in forced reeducation prisons, where
they can be tortured raped and killed for saying the wrong thing. I
doubt that Ms. Meng is in danger of suffering any of those "human
rights" violations. China Foreign Ministry and China's Canadian Embassy

****
**** English-speaking 'Five Eyes' countries are banning Huawei products
****


Huawei Technologies is the world’s largest telecommunications
equipment provider, and it is the second largest mobile phone
manufacturer. It is a pillar of the Chinese economy. Its founder Ren
Zhengfei is a former military officer in the People Liberation Army
(PLA). Meng Wanzhou is his daughter.

Huawei has been promoting itself worldwide to sell routers and other
equipment for the latest technology advance, 5G networks, in countries
around the world. Back in August, Australia banned Huawei from
supplying equipment for its 5G networks. The United States has done
the same, and last week New Zealand did the same.

The United States, Britain, Canada, Australia and New Zealand are
members of the "Five Eyes" alliance that shares intelligence to combat
espionage, terrorism and global crime. Three of these countries have
been Huawei because of a security threat.

As I've said in the past, I've spent a part of my career as a senior
software engineer developing chip-level operating system software for
embedded systems, so I know exactly how any chip or any electronic
device can be turned into a tool for espionage. Furthermore, I can
tell you that not only is it doable, it's not even particularly
difficult for someone with the right skills.

Huawei could develop a chipset that works exactly as described in the
public specifications. The chipset could be subjected to thousands of
tests, and they would all work perfectly.

But what Huawei could do is install a "backdoor" into the chipset.
When the chip receives, say, a secret 1024-bit code, then it will
execute commands sent to it by Chinese engineers. Thus, the Chinese
are then in control of any devices with Huawei chips.

As I said, this is not only doable, it's easy to do. The "backdoor"
could not be detected until an attack had been launched, and then it
would be too late. And since it CAN be done, it's certain that it HAS
been done. China has been preparing for war with the West in every
possible way, and has conducted cybercrime and espionage on a massive
scale. Installing a secret backdoor in its chips would be one of the
easiest ways to prepare for war, so there's no doubt that they've done
it.

Huawei has been aggressively selling routers and other infrastructure
equipment to companies and governments around the world. China could
spy on transmissions over these networks or, in the worst case
scenario, completely shut down all commercial and government networks
during a war. For that reason, Huawei devices are considered to be a
security threat. Globe and Mail (Toronto) and AFP and Wired and Guardian (London)

Related Articles:



KEYS: Generational Dynamics, Meng Wanzhou, Sabrina Meng, China,
Huawei Technologies, Ren Zhengfei, People's Liberation Army, PLA,
HSBC Bank, Vancouver, Xi Jinping, John Bolton, Iran, ZTE,
Five Eyes, United States, Britain, Canada, Australia, New Zealand

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John J. Xenakis
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RE: Generational Dynamics World View - by radind - 05-14-2016, 03:21 PM
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RE: Generational Dynamics World View - by Galen - 08-18-2018, 03:42 AM
RE: Generational Dynamics World View - by Galen - 08-19-2018, 04:39 AM
7-Dec-18 World View -- Canada arrests the chief financial officer of China powerhouse - by John J. Xenakis - 12-06-2018, 11:42 PM
RE: Generational Dynamics World View - by tg63 - 09-25-2019, 11:12 AM
RE: Generational Dynamics World View - by JDG 66 - 03-09-2020, 02:11 PM
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