People hold a sign at a B.C. courthouse prior to the bail hearing for Meng Wanzhou, Huawei’s chief financial officer on Monday, December 10, 2018. THE CANADIAN PRESS/Jonathan Hayward

Canada-China relations turn icy over arrest of Chinese exec

The Huawei case has threatened to complicate U.S.-China efforts to resolve a bitter trade dispute.

Relations between Canada and China turned frostier Tuesday amid reports that the Chinese detained a former Canadian diplomat and as a Vancouver court resumed a hearing on whether to grant bail to a jailed top Chinese executive.

But U.S.-China tensions seemed to ease somewhat as the world’s two biggest economies confirmed they were working on talks to resolve a trade dispute that has shaken financial markets and threatens to slow global economic growth.

Relations between the three countries were shaken by the Dec. 1 arrest of Meng Wanzhou, chief financial officer of Chinese telecommunications giant Huawei and daughter of its founder. Canadian authorities detained Meng during a layover at the Vancouver airport at the request of the United States. The U.S. accuses Huawei of violating American economic sanctions against Iran.

The Huawei case has threatened to complicate U.S.-China efforts to resolve a bitter trade dispute.

But the Chinese government said Tuesday that its economy czar has discussed plans with U.S. Treasury Secretary Steven Mnuchin and Trade Rep. Robert Lighthizer for talks aimed at settling the two countries’ differences. Lighthizer’s office confirmed that he had spoken by phone with Chinese Vice Premier Liu He.

The news that trade negotiations may resume lifted stock markets around the world.

Just as the prospects for U.S.-China trade peace brightened, Canada’s relations with Beijing took a darker turn.

Reports surfaced Tuesday that former Canadian diplomat Michael Kovrig, now North East Asia senior adviser for the International Crisis Group, had been detained in China. The Brussels-based nongovernmental organization said in a statement that it is doing everything possible to obtain information about Kovrig’s whereabouts and to secure “his prompt and safe release.”

Kovrig previously worked as a Canadian diplomat in Beijing and Hong Kong and at the United Nations in New York. Canada’s Global Affairs department didn’t immediately respond with comment.

Canada had been bracing for retaliation for Meng’ arrest. The Canadian province of British Columbia cancelled a trade mission to China amid fears China could detain Canadians to put pressure on Ottawa over Meng’s detention.

In Vancouver, meanwhile, Meng was to appear in court for a third day Tuesday as she sought release on bail.

China vowed Tuesday that Beijing would “spare no effort” to protect against “any bullying that infringes the legitimate rights and interests of Chinese citizens,” Foreign Minister Wang Yi said at a conference in Shanghai.

Wang didn’t mention Meng. But ministry spokesman Lu Kang said Wang was referring to cases of all Chinese abroad, including Meng’s.

Washington accuses Huawei of using a Hong Kong shell company to sell equipment to Iran in violation of U.S. sanctions. It says Meng and Huawei misled banks about the company’s business dealings in Iran.

In a popular rallying cry in previous conflicts with the U.S., Japan, South Korea and other governments, Chinese nationalists called on consumers to support Chinese brands. But in an unusual development, an equally large number of internet users criticized such calls as reckless.

Huawei, the biggest global supplier of network gear for phone and internet companies, is the target of U.S. security concerns. Washington has pressured other countries to limit use of its technology, warning they could be opening themselves up to surveillance and theft of information.

The U.S. and China have tried to keep Meng’s case separate from their wider trade dispute, but jitters among companies and investors have roiled global stock markets.

The United States has slapped tariffs on $250 billion in Chinese imports in response to complaints Beijing steals American technology and forces U.S. companies to turn over trade secrets.

Tariffs on $200 billion of those imports were scheduled to rise from 10 per cent to 25 per cent on Jan. 1. But Trump agreed to postpone those by 90 days while the two sides negotiate.

AP Business Writer Joe McDonald, AP researcher Yu Bing and APTN video producers Fu Ting and Olivia Zhang in Beijing contributed to this report.

Jim Morris, Rob Gillies And Paul Wiseman, The Associated Press

Like us on Facebook and follow us on Twitter.

Just Posted

Terrace RCMP fill four police cars for 9th annual Cram a Cruiser event

Almost $2,000 was collected for local food banks, charity

Snow Valley Nordic Ski Club opens new fat bike and snowshoe trail

Created to improve safety for skiers, welcome more members

Council briefs: residents push city to keep bowling lanes open

Summary of council discussions from Dec. 9

Skeena Voices | No ocean to divide

Lillian Cui Garcia released a memoir reflecting on her life between the Philippines and Terrace

Terrace’s annual homeless count sees modest decrease

Though survey only captures snapshot in time

VIDEO: More air-passenger rights go into effect this weekend

The first set of passenger rights arrived in mid-July in Canada

Swoop airlines adds three destinations in 2020 – Victoria, Kamloops, San Diego

Low-fair subsidiary of WestJet Airlines brings new destinations in April 2020

Aid a priority for idled Vancouver Island loggers, John Horgan says

Steelworkers, Western Forest Products returning to mediation

Navigating ‘fever phobia’: B.C. doctor gives tips on when a sick kid should get to the ER

Any temperature above 38 C is considered a fever, but not all cases warrant a trip to the hospital

Transportation Safety Board finishes work at B.C. plane crash site, investigation continues

Transport Canada provides information bulletin, family of victim releases statement

Trudeau sets 2025 deadline to remove B.C. fish farms

Foes heartened by plan to transition aquaculture found in Fisheries minister mandate letter

Wagon wheels can now be any size! B.C. community scraps 52 obsolete bylaws

They include an old bylaw regulating public morals

Indigenous mother wins $20,000 racial discrimination case against Vancouver police

Vancouver Police Board ordered to pay $20,000 and create Indigenous-sensitivity training

Sentencing for B.C. father who murdered two young daughters starts Monday

The bodies of Aubrey, 4, and Chloe, 6, were found in Oak Bay father’s apartment Dec. 25, 2017

Most Read