
VANCOUVER, British Columbia (AP) β A Canadian judge ruled Wednesday the U.S. extradition case against a senior Huawei executive can continue to the next stage, a decision that is expected to further harm relations between China and Canada.
Canada arrested China's Meng Wanzhou, the daughter of Huaweiβs founder, at Vancouverβs airport in late 2018. The U.S. wants her extradited to face fraud charges. Her arrest infuriated Beijing, which sees her case as a political move designed to prevent Chinaβs rise.
Associate Chief Justice Heather Holmes said in her decision the allegations against Meng could constitute a crime in Canada and the extradition could therefore proceed.
The U.S. accuses Huawei of using a Hong Kong shell company to sell equipment to Iran in violation of U.S. sanctions. It says Meng, 48, committed fraud by misleading the HSBC bank about the companyβs business dealings in Iran.
Mengβs lawyers argued during a hearing in January that the case is really about U.S. sanctions against Iran, not a fraud case. They maintain since Canada does not have similar sanctions against Iran, no fraud occurred under its laws.
βMs. Mengβs approach to the double criminality analysis would seriously limit Canadaβs ability to fulfill its international obligations in the extradition context for fraud and other economic crimes," Holmes wrote.
Holmes said Canada did not have economic sanctions against Iran at the time but noted the sanctions used by the U.S. βwere not fundamentally contrary to Canadian values."
The ruling against Meng, the companyβs chief financial officer, is expected to further harm relations between Beijing and Ottawa.
In apparent retaliation for Mengβs arrest, China detained former Canadian diplomat Michael Kovrig and Canadian entrepreneur Michael Spavor. China has also placed restrictions on various Canadian exports to China, including canola oil seed. China also handed a death sentence to a convicted Canadian drug smuggler in a sudden retrial.
Huawei is the biggest global supplier of network gear for phone and internet companies and some analysts say Chinese companies have flouted international rules and norms amid allegations of technology theft. The company represents Chinaβs progress in becoming a technological power and has been a subject of U.S. security concerns.
Her legal team is scheduled to be back in court in June and will argue that Canada Border Services, the Royal Canadian Mounted Police and the FBI violated Mengβs rights while collecting evidence before she was actually arrested. Extradition cases typically take years in Canada.
Ahead of the decision, Meng posed for photos on the court steps this past weekend, giving a thumbs up sign. She showed up to court on Wednesday wearing a black dress and wearing an ankle bracelet.