It seems there is no end in sight for the controversies surrounding Chinese tech company Huawei. While security agencies for long alleged that the company followed shady business practices, some of the recent developments have shed light on the role the smartphone maker can play in China’s relations with the western world.
One of the key reasons behind the continuing stalemate in the efforts to resolve the US-China trade war is the arrest of Huawei’s CFO Meng Wangzhou by the Canadian authorities last month, for allegedly breaching the US sanction against Iran. In their response to the incident, the Chinese authorities hinted at Washington’s involvement in the arrest and demanded the immediate release of Wangzhou, who is the daughter of the company’s founder.
One of the key reasons behind the continuing stalemate in the efforts to resolve the US-China trade war is the arrest of Huawei’s CFO in China
Worse, the incident reversed some of the progress Washington and Beijing had made earlier towards finding a permanent resolution to the trade standoff. While China claimed Wangzhou was innocent and warned of serious consequences if the Canadian government failed to respond to its request favorably, the general perception is that it is high time the management of Huawei took proactive steps to revive its tainted image.
Ironically, while going through one of its most difficult times, the company is also scaling new heights in the smartphone business, outsmarting Apple (AAPL) in global sales.
Meanwhile, the arrest of some Canadian citizens in China, which followed Wangzhou’s detention, invited criticism from the Canadian authorities who termed the incident a tit-for-tat move by China. That Britain and Australia are also taking a negative stance against Huawei shows the issue is not just legal, but a political issue with far-reaching consequences.
In yet another incident that could dent Huawei’s reputation among the international community, one of its employees was arrested in Poland Friday for alleged espionage. According to reports, the company’s sales director was taken into custody for allegedly engaging in activities that could threaten Poland’s national security.