Canadian court weighs bail for jailed CFO of China's Huawei

A Canadian provincial court weighing whether to grant bail to a top executive of Chinese telecoms giant Huawei Technologies who is facing possible extradition to the United States, adjourned on Monday without deciding her fate.

Meng’s arrest has roiled markets over fears it would exacerbate tensions between the United States and China, already at a high over tariffs. The two sides have agreed to trade negotiations that must be concluded by March 1.

Beijing has demanded Meng’s immediate release and threatened “consequences” for Canada. But both Chinese and U.S. officials appear to be avoiding linking her arrest to the trade dispute.

Meng’s lawyer offered C$14 million in property equity and C$1 million in cash as a guarantee. The public prosecutor said he wanted half in cash and half in property.

At one point the judge asked why Meng had avoided travel to the United States since 2017 if not to avoid arrest. Martin cited a “hostile” climate toward Huawei in the United States.

“I ask the court to ask itself, what motive could she possibly have to flee?” Martin said, arguing the evidence against her was not overwhelming.

“If she were to flee, or breach order in any way ... it doesn’t overstate things to say she would embarrass China itself.”

Meng appeared confident in court early on Monday, smiling and taking her lawyer’s arm. But by mid-afternoon she appeared more tense, gesturing rapidly as she conferred with members of her legal team.

She has argued she needs to be released because she has severe hypertension and fears for her health.

Huawei is the world’s largest supplier of telecommunications network equipment and second-biggest maker of smartphones, with revenue of about $92 billion last year. Unlike other big Chinese technology firms, it does much of its business overseas.

U.S. officials allege Huawei was trying to use the banks to move money out of Iran. Companies are barred from using the U.S. financial system to funnel goods and services to sanctioned entities.

Huawei and its lawyers have said the company operates in strict compliance with applicable laws, regulations and sanctions of the United States and other parties.

“We will continue to follow the bail hearing tomorrow. We have every confidence that the Canadian and U.S. legal systems will reach a just conclusion,” the company said on Monday.