Huawei committed to Canadian investment despite CFO arrest: chairman – Reuters
What happened: Huawei chairman Liang Hua said on Thursday that the company plans to boost research and development spending in Canada this year, including 200 new jobs and a 15% increase in investment. The company’s statement comes after a cascade of global diplomatic events following the December arrest of Meng Wanzhou, the firm’s CFO and daughter of its founder, by Canadian police at the request of the United States for fraud involving US sanctions against Iran.
Why it’s important: Huawei is expanding its presence in Canada despite the tensions between China and the United States. As the two sides work toward consensus on a series of trade issues, Meng could be released as early as April, according to a Communist Party senior adviser in the South China Morning Post. Earlier this week the UK cyber security watchdog concluded that security risks posed by using Huawei’s technology to construct 5G networks can be mitigated, followed by New Zealand Prime Minister Jacinda Ardern stating Wednesday that Huawei is still in the running for its 5G network upgrades. Such statements could prove influential as the UK and New Zealand share US intelligence as members of the ‘Five Eyes’ alliance.