United States broke WTO rules in tackling Huawei, top Chinese official says
- Spokesman for China’s legislature accuses Washington of disrupting market competition with political interference in the telecom giant’s economic activity
A senior Chinese official has accused the United States of violating World Trade Organisation rules in its treatment of Chinese telecom giant Huawei, as the saga over the extradition of the company’s chief financial officer deepened.
Zhang Yesui, spokesman for the National People’s Congress, China’s legislature, launched the barrage just days after Huawei Chief Financial Officer Meng Wanzhou filed a lawsuit against Canadian authorities, accusing them of detaining and interrogating her before telling her she was under arrest.
In another dramatic turn on Monday, China accused former Canadian diplomat Michael Kovrig of spying and stealing Chinese state secrets since 2017. A Xinhua report said Kovrig obtained intelligence from Michael Spavor, another Canadian detained for allegedly endangering state security.
The Canadians were detained in December in a move widely see as retaliation for Canada’s decision to arrest Meng at the US’ request.
Meng has been accused of violating US sanctions against Iran by deliberately misleading banks about the company’s business dealings there.
The accusations against Kovrig and Spavor also come hard on the heels of Canada’s decision to go ahead with proceedings to extradite Meng to the US.
In addition, the US has urged its allies to exclude Huawei from involvement in their 5G networks, saying the company poses a security threat because China’s intelligence law compels companies and individuals to surrender data to Chinese intelligence services.
This is neither fair nor moral
Citing two people familiar with the matter, The New York Times reported that Huawei was also preparing to sue the US government for banning federal agencies from using the company’s products.
Meng Wanzhou extradition a ‘serious political incident’, China tells Canada
Zhang said the US was interfering politically in the economic activity of a Chinese company, which “violates WTO rules and disturbs fair competition in the international market”.
“This is neither fair nor moral,” he said. “We call on the relevant nation to stick to the market principle of fair competition to provide an impartial and non-discriminatory operating environment for Chinese companies.”
Zhang said China had always demanded that Chinese companies strictly abide by local laws overseas, and the Chinese government would never ask Chinese companies to do anything against the law.
He said using legislation to safeguard national security was an internationally accepted practice, including in the US and Europe.
They can arrest anyone internationally with domestic laws – you tell me if it’s dangerous or not
“In the legislative process of this law, China has also borrowed from the practice of the countries concerned,” Zhang said.
“China’s other laws also provide for the protection of the legitimate rights and interests of citizens and organisations, including data security and privacy rights.
These rules apply to national intelligence work. I think this should be fully and accurately interpreted and should not be taken out of context.”
China accuses Canadians Michael Kovrig and Michael Spavor of stealing state secrets
Delivered on the eve of the NPC’s annual gathering in Beijing, Zhang’s remarks appeared to convey Beijing’s dismay over Huawei and were echoed by other senior Chinese officials.
Zhang Ming, head of the Chinese Mission to the European Union, said it was the first time a business executive had been arrested under the framework of common law.
“They can arrest anyone internationally with domestic laws – you tell me if it’s dangerous or not,” he said.
Meanwhile, Meng filed a civil claim in a court in British Columbia on Friday accusing Canadian authorities of holding and interrogating her before notifying her that she was under arrest.
The suit also targets the Canada Border Services Agency and the Royal Canadian Mounted Police. A spokesman for Canada’s Department of Justice referred a request for comment to the Canadian Border Services Agency, which did not immediately respond.
Jia Mo, an analyst at market research firm Canalys, said Huawei was in a “risky position” as one of the world’s most important suppliers of 5G mobile communication equipment and had got caught in the middle of the US-China rivalry over the dominance of the next-generation technology.
“For now, the trade tension and the US accusations haven’t significantly hurt Huawei’s business. But it has brought a shadow over the prospects for Chinese tech companies, which have a strong overseas presence,” Jia said.
In another development, Zhang Yesui said the NPC was looking into possible legislation to cover artificial intelligence in the present five-year plan, which ends in 2020.
He said the aim was to “provide strong rule of law for innovation in and development of AI”.
Additional reporting by Meng Jing, Kinling Lo and Keegan Elmer
