12-07-2018, 11:45 PM
*** 8-Dec-18 World View -- Arrest of Meng Wanzhou of China's Huawei has increasingly serious implications
This morning's key headlines from GenerationalDynamics.com
****
**** Huawei's Meng Wanzhou faces possible 30 year jail term
****
![[Image: g181207b.jpg]](http://Media.GenerationalDynamics.com/ww2010/g181207b.jpg)
Meng Wanzhou (fensifuwu.com)
As we described yesterday, Huawei Technologies chief financial officer
(CFO) Ms. Meng Wanzhou was arrested by Canadian police on Saturday,
while changing planes in Vancouver. Meng is the daughter of of Huawei
founder Ren Zhengfei, who was previously an officer and engineer in
China's People's Liberation Army (PLA). ( "7-Dec-18 World View -- Canada arrests the chief financial officer of China powerhouse Huawei"
)
Meng appeared in a Vancouver court on Friday, where the allegations
were laid out:
If convicted on all these charges, Meng faces up to 30 years in jail
in the United States.
The Chinese government has called for Meng’s immediate release, saying
that arresting her violates her "human rights."
Meng's lawyers are requesting bail, saying that she's not a flight
risk because she would not risk embarrassing her father or her country
by fleeing before her extradition hearing. However, Canadian
prosecuters say that Meng is the daughter of the company’s billionaire
founder, Ren Zhengfei, is a flight risk because of her wealth and the
fact that she could face three decades in prison. Washington Post and Reuters (31-Jan-2013)
****
**** Japan blocks Huawei products from public infrastructure projects
****
For reasons that I described in detail
in yesterday's article, we have to assume that it is
absolutely certain that any Huawei networking device can be controlled
remotely by China's military and used for espionage, and that it's
impossible to detect this.
On Friday, Japan's government said that it will exclude Chinese
telecommunication equipment-makers Huawei Technologies Co. and ZTE
Corp. from public procurement because of security concerns.
Japan joins the United States, Australia and New Zealand in
implementing such a ban. Canada, Britain and the European Union are
investigating security issues, although Germany's interior ministry
opposes banning Huawei. Japan Times and BBC
****
**** The story of Stern Hu, an employee of Australian mining company Rio Tinto
****
An example of how Meng Wanzhou might be treated is the tale of Stern
Hu, an executive in Australian firm Rio Tinto who was jailed in 2009
and only freed four months ago.
Hu was apparently one of the millions of peaceful student protesters
in the 1989 Tiananmen Square protests that Chinese authorities ended
on June 4, 1989, with a bloody massacre that killed thousands of
students.
Hu used to work for China International Trust and Investment Co, until
a photo surfaced in a magazine showing him participating in the
Tiananmen Square protests, at which time he was fired. He traveled to
Australia, became an Australian citizen, and in 1996 joined a company
that went on to become the international mining giant Rio Tinto. Hu
becamse head of Rio Tinto's iron ore business in China.
In 2010, Hu and three other Rio Tinto executives were given hefty jail
sentences on charges of corruption and bribery for bribing executives
from Chinese steel companies to sign contracts with Rio Tinto. Hu was
given a ten-year jail sentence, but he was released in July of this
year for good behavior.
The incarceration of Hu Stern can provide precedents for how the case
of Meng Wanzhou should be resolved. Telegraph (London, 28-Jul-2009) and Australian Broadcasting (5-Aug-2010) and Mining.com and Washington Post
****
**** Arrest of Meng Wanzhou of China's Huawei has increasingly serious implications
****
In yesterday's article,
I
speculated that the Trump administration will decide to de-escalate
this situation quickly by returning Meng to China as soon as possible,
in order to avoid risking the current "ceasefire" in the trade war
between the US and China.
However, some analysts point out that the opposite may be true,
because otherwise our allies may not continue to support us. ZTE is
another Chinese company that was severely sanctioned for making
illegal sales to Iran. The Trump administration heavily sanctioned
ZTE, but the sanctions were reversed as the result of a personal plea
by Xi Jinping to Donald Trump. This reversal, according to analysts,
confused our allies, who wonder how serious the Trump administration
is about enforcing the sanctions against Iran.
This reasoning indicates that the Trump administration is going to
have to follow a hard line in the case of Meng, including giving her a
jail sentence, as in the case of the Rio Tinto executive.
At the same time, the Chinese are becoming increasingly infuriated by
Meng's arrest. Huawei is perhaps the most respected company in China,
and many Chinese people are viewing the arrest of Meng and the banning
of Huawei products as part of a policy to contain China.
Chinese people, including Xi Jinping, claim that China has been
repeatedly humiliated by countries of the West, starting with the
Opium Wars in the 1840s. ( "21-Mar-18 World View -- Xi Jinping invokes the 1840s Opium Wars to justify military action for China's 'rejuvenation'"
)
Some Chinese are saying that the campaign against Huawei is a
continuation of the West's policy of humiliating China and containing
China.
I've been writing for years how, as the world goes deeper into a
generational Crisis era, countries of the world are becoming
increasingly xenophobic and nationalistic, and that eventually this
leads to a new generational crisis war. Generational Dynamics
predicts that China and the US are headed for a new world war. The
Huawei situation has resulted an increase in xenophobia and
nationalism in both countries, bringing us one step closer to that
world war. Al Jazeera
Related Articles:
KEYS: Generational Dynamics, Meng Wanzhou, China,
Huawei Technologies, Ren Zhengfei, People's Liberation Army, PLA,
Xi Jinping, John Iran, ZTE, Skycom,
United States, Britain, Canada, Australia, New Zealand, Japan,
Hu Stern, Tiananmen Square, Rio Tinto, Opium Wars
Permanent web link to this article
Receive daily World View columns by e-mail
Contribute to Generational Dynamics via PayPal
John J. Xenakis
100 Memorial Drive Apt 8-13A
Cambridge, MA 02142
Phone: 617-864-0010
E-mail: john@GenerationalDynamics.com
Web site: http://www.GenerationalDynamics.com
Forum: http://www.gdxforum.com/forum
Subscribe to World View: http://generationaldynamics.com/subscribe
This morning's key headlines from GenerationalDynamics.com
- Huawei's Meng Wanzhou faces possible 30 year jail term
- Japan blocks Huawei products from public infrastructure projects
- The story of Stern Hu, an employee of Australian mining company Rio Tinto
- Arrest of Meng Wanzhou of China's Huawei has increasingly serious implications
****
**** Huawei's Meng Wanzhou faces possible 30 year jail term
****
Meng Wanzhou (fensifuwu.com)
As we described yesterday, Huawei Technologies chief financial officer
(CFO) Ms. Meng Wanzhou was arrested by Canadian police on Saturday,
while changing planes in Vancouver. Meng is the daughter of of Huawei
founder Ren Zhengfei, who was previously an officer and engineer in
China's People's Liberation Army (PLA). ( "7-Dec-18 World View -- Canada arrests the chief financial officer of China powerhouse Huawei"
)
Meng appeared in a Vancouver court on Friday, where the allegations
were laid out:
- Meng is accused of overseeing a complex scheme to allow Huawei
to sell networking infrastructure equipment to Iran in violation of US
sanctions.
- Meng is alleged to have created a Hong Kong based shell company
called Skycom, to be used in her fraud scheme.
- Meng committed fraud in 2013 by telling banks and financial
institutions that Huawei had no connection to Skycom, when in fact
Skycom was a subsidiary of Huawei. An investigation by Reuters in
2013, for example, revealed that on linkedin.com several workers
listed "Huawei-skycom" as an employer.
- These banks then cleared financial transactions for Huawei,
inadvertently doing business with SkyCom and becoming “victim
institutions” of fraud.
If convicted on all these charges, Meng faces up to 30 years in jail
in the United States.
The Chinese government has called for Meng’s immediate release, saying
that arresting her violates her "human rights."
Meng's lawyers are requesting bail, saying that she's not a flight
risk because she would not risk embarrassing her father or her country
by fleeing before her extradition hearing. However, Canadian
prosecuters say that Meng is the daughter of the company’s billionaire
founder, Ren Zhengfei, is a flight risk because of her wealth and the
fact that she could face three decades in prison. Washington Post and Reuters (31-Jan-2013)
****
**** Japan blocks Huawei products from public infrastructure projects
****
For reasons that I described in detail
in yesterday's article, we have to assume that it is
absolutely certain that any Huawei networking device can be controlled
remotely by China's military and used for espionage, and that it's
impossible to detect this.
On Friday, Japan's government said that it will exclude Chinese
telecommunication equipment-makers Huawei Technologies Co. and ZTE
Corp. from public procurement because of security concerns.
Japan joins the United States, Australia and New Zealand in
implementing such a ban. Canada, Britain and the European Union are
investigating security issues, although Germany's interior ministry
opposes banning Huawei. Japan Times and BBC
****
**** The story of Stern Hu, an employee of Australian mining company Rio Tinto
****
An example of how Meng Wanzhou might be treated is the tale of Stern
Hu, an executive in Australian firm Rio Tinto who was jailed in 2009
and only freed four months ago.
Hu was apparently one of the millions of peaceful student protesters
in the 1989 Tiananmen Square protests that Chinese authorities ended
on June 4, 1989, with a bloody massacre that killed thousands of
students.
Hu used to work for China International Trust and Investment Co, until
a photo surfaced in a magazine showing him participating in the
Tiananmen Square protests, at which time he was fired. He traveled to
Australia, became an Australian citizen, and in 1996 joined a company
that went on to become the international mining giant Rio Tinto. Hu
becamse head of Rio Tinto's iron ore business in China.
In 2010, Hu and three other Rio Tinto executives were given hefty jail
sentences on charges of corruption and bribery for bribing executives
from Chinese steel companies to sign contracts with Rio Tinto. Hu was
given a ten-year jail sentence, but he was released in July of this
year for good behavior.
The incarceration of Hu Stern can provide precedents for how the case
of Meng Wanzhou should be resolved. Telegraph (London, 28-Jul-2009) and Australian Broadcasting (5-Aug-2010) and Mining.com and Washington Post
****
**** Arrest of Meng Wanzhou of China's Huawei has increasingly serious implications
****
In yesterday's article,
I
speculated that the Trump administration will decide to de-escalate
this situation quickly by returning Meng to China as soon as possible,
in order to avoid risking the current "ceasefire" in the trade war
between the US and China.
However, some analysts point out that the opposite may be true,
because otherwise our allies may not continue to support us. ZTE is
another Chinese company that was severely sanctioned for making
illegal sales to Iran. The Trump administration heavily sanctioned
ZTE, but the sanctions were reversed as the result of a personal plea
by Xi Jinping to Donald Trump. This reversal, according to analysts,
confused our allies, who wonder how serious the Trump administration
is about enforcing the sanctions against Iran.
This reasoning indicates that the Trump administration is going to
have to follow a hard line in the case of Meng, including giving her a
jail sentence, as in the case of the Rio Tinto executive.
At the same time, the Chinese are becoming increasingly infuriated by
Meng's arrest. Huawei is perhaps the most respected company in China,
and many Chinese people are viewing the arrest of Meng and the banning
of Huawei products as part of a policy to contain China.
Chinese people, including Xi Jinping, claim that China has been
repeatedly humiliated by countries of the West, starting with the
Opium Wars in the 1840s. ( "21-Mar-18 World View -- Xi Jinping invokes the 1840s Opium Wars to justify military action for China's 'rejuvenation'"
)
Some Chinese are saying that the campaign against Huawei is a
continuation of the West's policy of humiliating China and containing
China.
I've been writing for years how, as the world goes deeper into a
generational Crisis era, countries of the world are becoming
increasingly xenophobic and nationalistic, and that eventually this
leads to a new generational crisis war. Generational Dynamics
predicts that China and the US are headed for a new world war. The
Huawei situation has resulted an increase in xenophobia and
nationalism in both countries, bringing us one step closer to that
world war. Al Jazeera
Related Articles:
- Canada arrests the chief financial officer of China powerhouse Huawei (07-Dec-2018)
- Donald Trump and Xi Jinping agree to a 90 day moratorium in trade war (02-Dec-2018)
- Mike Pence's China 'containment' speech signals more contentious US-China relations (26-Oct-2018)
- Australia passes foreign influence laws, targeting China (29-Jun-2018)
- Xi Jinping invokes the 1840s Opium Wars to justify military action for China's 'rejuvenation' (21-Mar-2018)
- Huawei scandal exposes potential 'Cyberwar Pearl Harbor' from China (14-Oct-2012)
KEYS: Generational Dynamics, Meng Wanzhou, China,
Huawei Technologies, Ren Zhengfei, People's Liberation Army, PLA,
Xi Jinping, John Iran, ZTE, Skycom,
United States, Britain, Canada, Australia, New Zealand, Japan,
Hu Stern, Tiananmen Square, Rio Tinto, Opium Wars
Permanent web link to this article
Receive daily World View columns by e-mail
Contribute to Generational Dynamics via PayPal
John J. Xenakis
100 Memorial Drive Apt 8-13A
Cambridge, MA 02142
Phone: 617-864-0010
E-mail: john@GenerationalDynamics.com
Web site: http://www.GenerationalDynamics.com
Forum: http://www.gdxforum.com/forum
Subscribe to World View: http://generationaldynamics.com/subscribe
