The arrest in Canada & # 39; Meng Wanzhou, chief executive at Huawei Technologies of China and daughter of the founder and chief executive, urged the global business community on Thursday and raised fears & # 39; that the ceasefire in the war of trade between the US and China can & # 39; perishable.
The arrest & # 39; Meng came at the behest of & # 39; the authorities & # 39; the United States and is connected to & # 39; investigation into allegations of & # 39; violation of trade sanctions & # 39; USA, f & # 39; Reuters name a person familiar with the matter. The foreign ministry of China said that neither the United States nor Canada does not explain the reasons for the arrest.
S & # 39; is Huawei?
Huawei is the largest supplier of & # 39; of telecommunications network equipment and the largest manufacturer of smart phones in the world, with a turnover of & # 39; about $ 92 billion the previous year. B & # 39; difference other major brands of Chinese technology, it does most of its business abroad and is market leader in & # 39; many countries across Europe, Asia and Africa.
The company was founded in 1987 by former military officer Ren Zhengfei. Remains & # 39; privately owned and describes himself as a & # 39; employee, although the structure of its ownership is unknown. It is based in the southern Chinese technology center & # 39; Shenzhen and employs about 180,000 people.
WATCH: China called on Canada, the United States to release to Huawei CFO having been arrested in & # 39; Vancouver
How did the company so successful?
Huawei has been a pioneer provider & # 39; telecommunication equipment at a time when China has been spending a lot to improve its networks, importing most of its equipment. Huawei began to compete internationally in the nineties and was known to drastically reduce rivals on price.
Competitors have to Huawei brand by vendor & # 39; & # 39 reduced rate, copying equipment, and companies including Cisco Systems and Motorola filed lawsuits over alleged trade secret theft.
But Huawei spent heavily on research and development and is now regarded as a global leader in key business telecommunications network technologies and high-end smartphones. B & # 39; contrast, its major Western rivals, Nokia and Ericsson, has struggled financially in recent years.
Huawei continues to expand in today & # 39; new areas including the development of the chip, artificial intelligence and cloud computing.
Why do some governments have banned the Huawei equipment?
The intelligence agencies of the United States claiming that Huawei is linked to the government of China and its equipment can & # 39; contain "backdoors" for use by frequent government. No evidence has been published publicly and repeatedly denied requests firm.
But suspicions persist. The concern is now centered on the deployment of & # 39; mobile networks of the fifth generation (5G), where Huawei is the most advanced. A new law in China that requires a domestic firm to assist the government when questioned was also a concern.
The government & # 39; the United States has taken a series of & # 39; steps to block the company from markets & # 39; the United States, including government buying ban & # 39; equipment & # 39; Huawei and deny government support to any carrier that uses Huawei equipment. The major carriers Verizon Communications and AT & T managed to distribute Huawei smartphones deal earlier this year.
The vast majority of countries, including US allies such as Canada, Britain and Germany, made no moves against Huawei, arguing that they have sufficient procedures to verify the safety equipment. But Australia and New Zealand recently banned Huawei to build a 5G networks, and there are indications that other countries, including Germany, are reviewing the matter.
The arrest & # 39; Meng Wanzhou is related to & # 39; these safety concerns?
The US authorities did not reveal the circumstances of the arrest & # 39; Meng, but a person familiar with the matter told Reuters the arrest is related to & # 39; violation of US trade sanctions. Reuters investigation published almost six years ago on its ties with & # 39; & # 39 with Huawei; call ELESMT company that tried to sell the Hewlett-Packard computer equipment to the Iranian mobile operator, in violation of & # 39; those sanctions.
There was also another Chinese company accused of infringement & # 39; & # 39 sanctions; Iran?
ZTE Corp, the smaller rival & # 39; Huawei, the found guilty last year to break to evade embargoes by selling the US equipment to Iran. Earlier this year, the Department of the US Commerce said ZTE infringed resolution and impedixha to buy any US component – a move that whole set many & # 39; ZTE operations.
Reached a new solution and the ban lifted at the request of the President of the United States Donald Trump, perceived concession to Chinese President Xi Jinping that surprised and angered others in the US government.
These issues are related to the business of the U.S.-China war?
Investigations on penalties long before the trade war. But the timing of the arrest deals with issues came as the Trump presidents and some reached the deafness of temporary trade war. Financial markets were negative on the news about the arrest of fears that could detect the ceasefire. However, m & # 39; there is no evidence that this is a deliberate provocation by the United States instead of merely uncomfortable coincidence.
WATCH: The Canada still has to stop 5G technology from China & # 39; Huawei
S & # 39; can & # 39; Huawei to happen now?
A ban on the purchase of & # 39; component & # 39; the United States, such as temporarily imposed on ZTE, is devastating, but not & # 39; there is no immediate reason to suggest that happen. If the case raises the major European countries b & # 39; in particular to bring against the firm, it has long-term impact on growth and influence.
Still, the status & # 39; Huawei as kingpin of the upstream industry of China, f & # 39; time when the country is racing to meet the United States in & # 39; difficult areas such as the development of chips , means that it will certainly continue & # 39; powerful force for years to come.
WATCH: Trudeau says the decision to prohibit Huawei 5G technology is based on facts and evidence