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

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

Gwen Spencer Hethey with her uncle and mentor Major Frederick Richardson. (Courtesy of Greater Victoria Sports Hall of Fame)
‘She was a killer’: The Victoria woman who pioneered female sharpshooting

Gwen Spencer Hethey made military men ‘look like turkeys’ says her son

Anita Troop officially turns 100 on Sunday and cards are pouring in from around the world. (Courtesy Marina Miller)
Cards roll in from around the world for West Shore 100 year old

About 100 cards have come for the woman who turns 100 on Sunday

Patrick O’Brien, a 75-year-old fisherman, went missing near Port Angeles Thursday evening. (Courtesy of U.S. Coast Guard)
UPDATE: Search suspended for angler missing between Port Angeles and Victoria

The 75-year-old man was reported missing Thursday evening

A cardboard man bearing Queen Elizabeth II’s royal cipher has been placed in a window at the Royal Theatre for at least several days. (Evert Lindquist/News Staff)
Mysterious cardboard figure appears in Victoria’s Royal Theatre window

The identity of the figure, which was moved there amid cleaning, remains unknown

Black Press file photo
RCMP seek suspect in Vancouver Island-wide crime spree

Crimes stretched from Deep Bay to Qualicum, Ladysmith, Chemainus and Youbou

A small pod of Pacific white-sided dolphins pass by close to shore in Campbell River June 16, 2021. Still capture from video courtesy of Kimberly Hart
VIDEO: Dolphin sunset captured from Vancouver Island shore

Spectacular setting for view of travelling pod of Pacific white-sided dolphins

Bruce Springsteen performs at the 13th annual Stand Up For Heroes benefit concert in support of the Bob Woodruff Foundation in New York on Nov. 4, 2019. (Greg Allen/Invision/AP)
‘Springsteen on Broadway’ clears way for AstraZeneca recipients to attend show

B.C. mayor David Screech who received his second AstraZeneca dose last week can now attend the show

New research suggests wolves can be steered away from the endangered caribou herds they prey on by making the man-made trails they use to hunt harder to move along. THE CANADIAN PRESS/Nathan Denette
Culling cutlines, not B.C. wolves, key to preserving caribou herds: researcher

The government has turned to killing hundreds of wolves in an effort to keep caribou around

Gary Abbott (left) and Louis De Jaeger were two of the organizers for the 2014 Spirit of the People Powwow in Chilliwack. Monday, June 21, 2021 is Indigenous Peoples Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of June 20 to 26

Indigenous Peoples Day, Take Your Dog to Work Day, Onion Rings Day all coming up this week

Central Okanagan Grade 12 grads are set to get $500 each after a more than $1 million donation from a Kelowna couple. (File photo)
B.C. couple donating $500 to every Grade 12 student in the Okanagan

Anonymous donors identified as Kelowna entrepreneurs Lance and Tammy Torgerson

Rita Coolidge played the main stage at Vancouver Island Musicfest in 2017. (Black Press file photo)
This year’s Vancouver Island MusicFest to virtually showcase beauty of Comox Valley

Returning July 9 through 11 with more than 25 hours of music performances

British Columbia’s premier says he’s received a second dose of the Oxford-AstraZeneca COVID-19 vaccine. (Twitter/John Horgan)
B.C. premier gets 2nd dose of AstraZeneca COVID-19 vaccine

John Horgan shared a photo of himself on social media Friday afternoon holding a completed vaccination card

A lotto Max ticket is shown in Toronto on Monday Feb. 26, 2018.THE CANADIAN PRESS
No winning ticket sold for Friday’s $70 million Lotto Max jackpot

The huge jackpot has remained unclaimed for several weeks now

Most Read