Risk of rising McCarthyism warned amid China-US spat

Photo: VCG

China’s business people, researchers, scholars say they ‘feel the chill’ in US

Growing China-US tensions have affected technology cooperation as Chinese scientists and researchers in cutting-edged sectors such as big data and artificial intelligence have seen rising obstacles in working with US counterparts this year.

Tensions have intensified after Canada announced the detention of Huawei Chief Financial Officer Meng Wanzhou at the request of the US.

This move is believed to be part of the US' intentions of dampening Chinese companies and investment, which aroused worries that McCarthyism is back in Washington.

"Some open-sourced platforms developed by American firms, such as in the machine learning algorithm sector, have started to limit access or charge fees for tapping into those platforms," a senior scientist in a Shenzhen-based AI company, who asked for anonymity, told the Global Times on Thursday.

"Some Chinese scientists were denied visas this year when they planned to attend academic meetings in the US, and the US' cautious attitude toward Chinese engineers has become more obvious," he said.

The Chinese academic community has felt the chill in relations since the beginning of this year, and the recent arrest of Meng has escalated conflict between the US and China. Some industry representatives even deemed the arrest as a long-term plan by the US to curb China's rise in high technology.

Meanwhile, the effects of the tension have also expanded to business. Hong Kong political risk consultancy SVA said they noticed a remarkable increase in inquiries from US-based companies about potential problems of traveling to China after Meng's detention for fear of China's retaliation, the Japan-based Nikkei Asian Review reported on Tuesday.

A Hong Kong-based financial technology company also moved two investor meetings from Shanghai to Manila to avoid being affected by Meng's case in consideration of its US co-founder, according to the Nikkei report.

The Trump administration has been restricting visas for the Chinese academic community studying in sensitive research fields to one year since June 11, reflecting its efforts to stop alleged intellectual property theft and hinder China's push for technological supremacy, the New York Times reported in July.

"The consensus of curbing China's influence has been forged inside the US government, and Chinese companies should be well prepared for confrontation in the long term," Sun Qingkai, partner of the major Chinese AI firm CloudWalk, told the Global Times on Thursday.

Sun's remarks are echoed by the tendency of Americans to habitually doubt anything related to China, particularly to Huawei at this moment.

The Brookings Institution, a Washington-based think tank, released a report in October 2017 on safe cities. The report, supported by Huawei, speaks highly of a new policing technology implemented in the Kenyan capital of Nairobi and the Chinese city of Lijiang but failed to mention that the technology was provided by Huawei.

An opinion piece of The Washington Post published on December 7 listed financial support from Huawei to Brookings and interactions between the writer of the report, Darrell M. West, who is also Brookings vice president, and Huawei founder Ren Zhengfei.

It then said that such relationship raises doubts over West's scholarship practices and represents "a worrying example of China's influence on one of America's leading think tanks" without providing any hard evidence.

China's cooperation with other countries was also negatively affected, especially those in high-tech sectors. An example is the Japanese government's recent ban on Huawei and ZTE from official contracts. The move followed an earlier warning from the US about security risks involved in using Chinese-made equipment, Washington Post reported on Monday.

McCarthyism warning

The current US strategy of blaming China for its own domestic economic and social problems reflects the country's anxiety and myopia facing these problems, which would only worsen the situation, Zha Xiaogang, a research fellow at the Shanghai Institute for International Studies, told the Global Times on Thursday.

Zha warned that although it seems impossible for the US to return to the McCarthy-era "red scare," when the anti-communism campaign penetrated all aspects of US society, such risks remain if the situation continues to escalate.

"There is already a dire ripple effect from the US-China trade war, which will hurt the US itself and global technology collaboration," said the Shenzhen-based senior scientist.

However, technology companies have been urging more cooperation instead of confrontation, which would hurt global advancement in this sector.

Major tech giants such as US firms Google and Apple, and China's Huawei have highlighted the importance of global collaboration, which will be the driving force for technology advancement.

Google Vice President Jay Yagnik told the Global Times in an earlier interview in September that technology has been a greater "uniter" globally from a historical view. Instead of thinking about competition, companies should think about it in terms of bringing the world together and taking society to the next level.

It is in everyone's best interest that the US and China reach an agreement on trade and future intellectual property and technology collaboration, Chris Dong, global research director at International Data Corporation, told the Global Times on Thursday.

"A more open market with less government intervention, and with mutual respect and reciprocity, will benefit not only a healthier US and China trade relationship, but also the talent and knowledge exchanges," Dong said.- Global Times

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• Ren Zhengfei leads Huawei Technologies, one of the world's largest manufacturer of telecommunication hardware and mobile phones.
• Ren is the son of school teachers and grew up in a mountainous town in southern China's Guizhou Province.
• Ren held technician posts in China's military and worked for Shenzhen South Sea Oil before establishing Huawei with the equivalent of $3,000 in 1987.
• Huawei today does business in more than 170 countries with 180,000 employees.

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Mr Ren Zhengfei survived Mao Zedong's great famine and went on to build a telecom giant with US$92 billion in revenue that strikes fear among some policymakers in the West.PHOTO: EPA-EFE

HONG KONG (BLOOMBERG) - At the sprawling Huawei Technologies campus in Shenzhen, the foodcourt's walls are emblazoned with quotes from the company's billionaire founder and chief executive Ren Zhengfei.

Then there's the research lab that resembles the White House in Washington. Perhaps the most curious thing, though, are three black swans paddling around a lake.

For Mr Ren, a former People's Liberation Army soldier turned telecom tycoon, the elegant birds are meant as a reminder to avoid complacency and prepare for unexpected crisis. That pretty much sums up the state of affairs at Huawei, whose chief financial officer, Ms Meng Wanzhou, who's also Mr Ren's daughter, is in custody in Canada and faces extradition to the United States on charges of conspiracy to defraud banks and violate sanctions on Iran.

The arrest places Huawei in the cross-hairs of an escalating technology rivalry between China and the US, which views the company, a critical global supplier of mobile network equipment, as a potential national security risk.

Hardliners in President Donald Trump's administration are especially keen to prevent Huawei from supplying wireless carriers as they upgrade to 5G, a next-generation technology expected to accelerate the shift to Internet-connected devices and self-driving cars.

Mr Ren is a legendary figure in the Chinese business world. He survived Mao Zedong's great famine and went on to build a telecom giant with US$92 billion (S$126 billion) in revenue that strikes fear among some policymakers in the West. Huawei is the No. 1 smartphone maker in China, and this year eclipsed Apple to become second maker globally, according to research firm IDC.

Though it has a low profile compared with China's Internet giants, Huawei's revenue last year was more than Alibaba Group Holding, Tencent Holdings and and Baidu Inc combined. About half of its revenue now comes from abroad, led by Europe, the Middle East and Africa.

The company's high-speed global expansion has come under fire for years, starting with the Committee on Foreign Investment in the US' derailing of an acquisition in 2008. More recently, Australia, New Zealand and the US have blocked or limited the use of Huawei gear.

The arrest and prosecution of Ms Meng in US courts comes amid a far bigger US-China struggle for technology dominance in the decades ahead - and could have huge, and potentially severe, consequences for Huawei. Mr Ren declined an interview request from Bloomberg News.

"It gives Trump a bargaining chip," said Mr George Magnus, an economist at Oxford University's China Centre. "She's the daughter of the CEO, Ren Zhengfei, himself a former PLA officer, and Huawei's alleged dealings with Iran are just the latest in a string of concerns."

An outright ban on buying American technology and components, should it come to that, would deal Huawei a crushing blow. Earlier this year, the Trump administration imposed just such a penalty on ZTE Corp, also a Chinese telecom, and threatened its very survival before backing down.

Both Huawei and ZTE are banned from most US government procurement work.

A full-blown, commercial ban in the US would not only apply to hardware components, but also cut off access to the software and patents of US companies, Mr Edison Lee and Mr Timothy Chau, analysts with Jefferies Securities, wrote in a report.

"If Huawei cannot license Android from Google, or Qualcomm's patents in 4G and 5G radio access technology, it will not be able to build smartphones or 4G/5G base stations," they note.

The company's legal troubles in the US may also spill into other markets.

"Government telecommunication infrastructure requirements are essentially locking out the Chinese supplier in critical growth markets," noted Morningstar Research equity analyst Mark Cash in an e-mail. "Additionally, telecom providers without government imposed restrictions may start limiting their usage of Huawei equipment for their 5G network build-outs."

If there's a Darth Vader in the minds of Chinese national security hawks in Washington worried about China's rising tech power, it's Mr Ren. In China, though, he's feted as a national hero, who rose from humble beginnings to the pinnacle of wealth and status in Chinese society.

His grandfather was a master of curing ham in his village in Zhejiang province, which afforded Mr Ren's father the chance to become the village's first university student, according to a 2001 essay by Mr Ren about his upbringing, which was published on a website linked to the Chinese Academy of Social Sciences.

His father, Mr Ren Moxun, was a Communist Youth League member, who later worked as a teacher and an accountant at a military factory, but who kept up his rebel fervour under the Kuomintang by selling revolutionary books.

After moving to rural Guizhou province, he met his wife Cheng Yuanzhao and gave birth to Mr Ren Zhengfei, the oldest of two sons and five daughters.

The family lived on modest teaching salaries. In one of Mr Ren's speeches, he remembered how his mother read him the story of Hercules, but withheld the ending until he came home with a good report card.

Famine Years

During the Great Leap Forward campaign that started in the late 1950s, a famine came to his home town after Communist Party industrialisation and collectivisation policies went off the rails. Mr Ren recalled in his essay how his mother stuffed into his hand each morning a piece of corn pancake while asking about his homework. His good grades gained him entry to the Chongqing Institute of Civil Engineering and Architecture.

After graduation, he worked in the civil engineering industry until 1974, when he joined the PLA's Engineering Corps as a soldier, and worked on a chemical fibre base in Liaoyang. Huawei says he rose to become deputy director, but did not hold military rank. He does, however, often pepper his speeches with military references.

"Our managers and experts need to act like generals, carefully examining maps and meticulously studying problems," Mr Ren said in a speech posted on a website for Huawei employees.

Mr Ren's Communist Party credentials aren't as deep as his father's. He attended the 12th National Congress of the Communist Party in 1982, and once cited the party's dogma of "a struggle that never ends" when defending the company's tough work hours.

But Mr Ren was a bookworm as a child and was denied acceptance into the Communist Youth League, according to the book Huawei: Leadership, Culture And Connectivity, a book co-authored by David De Cremer, Tian Tao and Wu Chunbo.

He didn't become a Communist Party member in the PLA until late in his military career. However, a 2012 House permanent Select Committee on Intelligence report on Huawei asked why a private company had a Communist Party Committee, which has become common among China's Internet giants.

Mr Ren retired from the army in 1983, and joined his first wife to work at a Shenzhen company involved in the city's special economic zone. It was around then that he had to sell off everything to pay a debt related to a business partner, and lost his job at Shenzhen Nanyou Group, as well as his first marriage, according to Ren Zhengfei And Huawei by author Li Hongwen.

Comeback Play

After a period of sleepless nights while living with family members, Mr Ren saw an opportunity. When China began its economic opening under Deng Xiaoping, the telephone penetration rate was lower than the average rate in Africa, or 120th in the world. He founded Huawei with four partners in 1987 with 21,000 yuan in initial working capital, just above the minimum threshold required under Shenzhen rules.

Huawei started out as a trader of telecom equipment, but the company's technicians studied up on switchboards and were soon making their own. Workers put in long hours in Shenzhen's swampy heat with only ceiling fans. Mr Ren kept up morale with subtle gestures, like offering pigtail soup to workers putting in overtime.

The company became known for its "mattress culture" in which workers would pass out on office mattresses from exhaustion. In 2006, a 25-year-old worker Hu Xinyu, who had made a habit of working into the wee hours and then sleeping at the office, died of viral encephalitis. Some Huawei employees subsequently committed suicide.

The deaths triggered a revision of the company policy on overtime, and the creation of a chief health and safety officer role.

It wasn't the only move Mr Ren made to stabilise morale. He used to pay his workers only half their salaries on payday, but eventually decided to convert the other half of employee salaries and bonuses into shares. The company's 2017 report shows that he has a 1.4 per cent stake, giving him a net worth of US$2 billion.

Wolf Culture

Huawei struggled for market share, with foreign companies using so-called "wolf culture" of aggressive salesmanship, which sometimes materialised in the form of Huawei employees flooding sales events with several times more salespeople than competitors.

The company ventured into international markets in the 2000s, with telecom equipment that was more affordable than products of competitors such as Cisco Systems. Huawei later admitted to copying a small portion of router code from Cisco and agreed to remove the tainted code in a settlement.

Mr Ren since stepped up the company's research and development. Of its 180,000 employees, about 80,000 are now involved in R&D, according to the company's 2017 report, and the company has been known to recruit some of China's top talent out of universities.

The company recently refocused on existing markets after the US government called Huawei a national security threat, and cited concerns over its possible control of 5G technologies. Mr Trump signed a Bill banning government use of Chinese tech including Huawei's, and has even contacted allies to get them to avoid using Huawei equipment.

Collectively owned by its employees, the company is known for a culture of discipline, in which no one, Mr Ren included, has their own driver or flies first class on the company dime. Lately, Mr Ren has been warning employees against using fake numbers or profit to enhance performance. The company set up a data verification team in 2014 within the finance department, which was overseen by Mr Ren's daughter.

In a recent speech posted on the Huawei employee network, however, he called for patience with critics, but rejected foreign intervention. "We will never give in or yield to pressure from outside," he said.

That maxim is going to be soon put to the test by the US Department of Justice.


Source: Bloomberg

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Professor Dr. Wang
Former Executive of Halliburton

DID HUAWEI VIOLATE IRAN SANCTIONS?

No, they didn’t.

CFO Meng was arrested supposedly for “violating Iran sanction”. This has to be the most grotesque distortion of justice since the US was the country who unilaterally pulled out IN VIOLATION of an agreement they had signed with multiple nations earlier !!! In other words, the guy who broke a solemn promise made, violated the agreement, then made sanction an American domestic law is now force feeding this law arbitrarily on the rest of the world by arresting someone who refuses to violate the agreement ! Is this making any sense to anybody?

Huawei created a subsidiary to do business with Iran, and the CFO is being charged with lying about the relationship between Huawei and the subsidiary.

This seems totally ridiculous to me since when I worked at Halliburton, we did EXACTLY the same thing ! Not only was our CEO never arrested, he was invited to join the government & became Vice President Dick Cheney !!!!!!!

The moral of this story is for normal businesses to be extremely vigilant & recognise the true faces of America & Saudi! One tosses you in jail for breaking twisted laws they make up as they go along & the other goes after you with a bone saw. Both are gangsters, far worse than the Mafia, because the Mafia at least have the decency to commit crimes secretively, while the thugs in American & Saudi governments commit their crimes blatantly in the open, with complete disregard to the laws & sovereignty of another country, bullying their way through, trying to justify their actions by smearing the victims... then run publicity campaigns to sway public opinions while accusing others of crimes against human rights.. ??!!

I am sure there are nice people in USA & in Saudi & i don’t want to generalise, but i have seen time & again in the States that if ever their oversized egos feel threatened, they can turn into totally evil, nefarious subhumans capable of the most despicable deeds.

The arrest of Meng is a case in point.

I went to the States starry eyed with high hopes & expectations, ready to learn a democratic system far superior than ours. Well, after my Ph.D and a few working years, I stand corrected.

Life in the States has taught me to be proud of my people and my country. Grass is definitely NOT greener on the other side. America is very strong in “hypes”, they talk big but deliver little. China does the opposite. American government spends on military, lives in “now”, supports the rich, & works for re-election. The Chinese government spends on infrastructure, works for the people, eradicated poverty & follows 5-30 year plans. These are facts, not propaganda, not campaign promises.

I can’t tell you how happy I am to be home again. Not only is the food much better, more importantly, I can finally stop worrying myself sick... about my elderly mom getting mucked, my attractive wife getting raped...my children getting bullied, drugged or shot in schools...Having to live in constant fear everyday is the ultimate violation of my human rights.

Gosh, it’s good to be back in civilisation.

Dr. Wang Wins Halliburton

Huawei clash shows deeper US-China battle for global influence as power coming from high-tech sector

Bail hearings proceeded this week after Meng Wanzhou(pic), the chief financial officer of Huawei Technologies Co, was arrested in Canada on Dec 1 because of alleged violations of US sanctions against Iran. The case threatens to derail a trade truce struck the same day between Donald Trump and Xi Jinping.

HONG KONG: The Trump administration has insisted the arrest of a top Huawei executive has nothing to do with trade talks. In Beijing, it’s just the latest US move to contain China’s rise as a global power.

Bail hearings proceeded this week after Meng Wanzhou, the chief financial officer of Huawei Technologies Co, was arrested in Canada on Dec 1 because of alleged violations of US sanctions against Iran. The case threatens to derail a trade truce struck the same day between Donald Trump and Xi Jinping.

Even if the two leaders manage to strike a broader deal, the arrest shows that the US-China conflict goes far beyond trade. The world’s biggest economies are now engaged in a battle for global influence that will ultimately determine whether the US remains the globe’s predominant superpower, or China rises as a viable counterweight.

“The sentiment in Washington now is not just a Trumpian mercantilism – the desire to bring back factory jobs to Wisconsin or wherever,” said Nick Bisley, a professor of international relations at La Trobe University in Melbourne who has written books on great-power politics. “It is a desire to significantly cut ties with China because of that larger perception it presents a strategic risk.”

A bipartisan consensus has emerged in Washington that China’s entry into the World Trade Organisation hollowed out US manufacturing and allowed it to grow rich. That increased economic power is now at a point where it risks eroding key American military advantages around the globe.

China insists it plays by the rules, and doesn’t challenge US dominance. Even so, three areas in particular worry American strategic planners: Technology, the dollar and the ability to project military power overseas.

A year ago, the White House identified China’s growing technological prowess as a threat to US economic and military might. American companies have long argued that China forces them to transfer intellectual property and sometimes steals trade secrets – all of which Beijing denies.

In justifying tariffs, Trump’s team has cited Beijing’s “Made in China 2025” strategy to become a global leader in state-of-the-art technologies from aerospace to robotics. So far, China has resisted those demands, arguing that doing so would crush its economic potential.

Huawei in particular epitomises the threat. Earlier this year, Trump blocked Broadcom Inc’s US$117bil hostile takeover bid for Qualcomm Inc over concerns that Huawei would end up dominating the market for computer chips and wireless technologies.

The fear is that wireless carriers may be forced to turn to Huawei or other Chinese companies for 5G technology, potentially giving Beijing access to critical communications. Those concerns have prompted the US to ban Huawei’s products for government procurement, and Australia, Japan and New Zealand have reportedly followed.

China has fought back, with foreign ministry spokesman Lu Kang saying this week that Huawei didn’t “force any enterprise to install forced backdoors.”

“The competition is really focused in the areas where future strategic and economic dominance come from,” said Michael Shoebridge, director of the defense and strategy programme at the Australian Strategic Policy Institute.

“The Huawei arrest is right in the middle of this because both America and China see their future global power as coming from the high-tech sector.”

The dominance of the dollar has allowed the US to effectively control the world’s financial system, underpinning its superpower status. Yet Trump’s increased use of sanctions to assert its foreign-policy goals has prompted a wide range of nations – from China to Russia to the European Union – to look for an alternative.

The Trump administration added nearly 1,000 entities and individuals to its sanctions list in its first year, almost 30% more than the Obama administration’s last year in office, according to law firm Gibson Dunn. The complete list now runs to more than 1,200 pages.

Sanctions are a key tool for the US to subdue potential adversaries like North Korea, but they also can affect friends and allies. The EU, which objected to reimposing sanctions on Iran, this month unveiled plans to mitigate the so-called “exorbitant privilege” of the dollar.

During a visit to China last month, Russian Prime Minister Dmitry Medvedev said the two nations were looking at ways to boost the use of their currencies through allowing the use of China’s UnionPay credit card in Russia and Russia’s Mir card in China. “No one currency should dominate the market,” he said.

“We are potentially at the beginning of a systemic shift that may take some time to play out,” said Gregory Chin, associate professor at York University in Toronto, and a political economy specialist. “The political will is building and coalescing.” — Bloomberg

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Extradition case: A home owned by the family of Meng Wanzhou, who is being held on an extradition warrant, is pictured in Vancouver. — Reuters

For Huawei CFO, an Idyllic Summer Playground Turns Into a Prison

Vancouver plays a special role for Meng Wanzhou, as it does for many a wealthy Chinese -- a place to park some assets, educate your children, and just let your hair down from time to time.

Meng -- chief financial officer of Huawei Technologies Co., a telecom equipment giant present in more than 170 countries -- would carve a few weeks out of her punishing travel schedule every year for a break in the Canadian city.

She’d time it for the summer, when her children would be there and when the city’s crystal waters and craggy mountains would emerge from 10 months of rain to be bathed in long, golden days of sunshine. Just last August, she was seen strolling through a local park, snapping photos with her in-laws.

Her place of retreat has now become a jail. On Dec. 1, Meng stepped off a Cathay Pacific flight from Hong Kong around noon, and had planned a 12-hour stopover in Vancouver before heading on to Mexico. Instead, she was arrested by Canadian authorities and faces a U.S. extradition request on charges she conspired to defraud banks, including HSBC Bank Plc, so that they unwittingly cleared millions of dollars in transactions linked to Iran, in violation of U.S. sanctions.

This time, her stay looks to become an extended one -- extradition cases can sometimes take years. Whether she spends that time in a cell or under house arrest may hinge in part upon her ties to Vancouver and if they’re considered deep enough to stop her from fleeing.

Meng’s bail hearing resumes Monday at 10 a.m. local time. It’s expected to last the whole day as her defense team calls witnesses, including security companies, to testify on ways to address flight risk.

“In essence, Ms. Meng vacations for two weeks in Vancouver -- I say that is not a meaningful connection to this jurisdiction,” Crown attorney John Gibb-Carsley said Friday at the six-hour bail hearing in Vancouver as more than 100 spectators watched from a glass-walled gallery.

Meng -- wearing a dark green sweat suit, her posture impeccable -- watched from the back of the courtroom with her interpreter, occasionally taking notes on a sheet of paper. The 46-year-old has an incentive to flee home to China, which has no extradition treaty with the U.S., and she has the vast resources and connections to remain out of reach indefinitely, Gibb-Carsley said.

Canada has long been a favored destination for millionaire migrants, and Vancouver, especially, for the Asian ones. But increasingly that’s been stoking tensions in a city awash in Chinese cash, with wealthy part-time residents blamed for property prices that have made Vancouver the most unaffordable city in North America.

Meng, who first visited Vancouver 15 years ago, bought a six-bedroom house with her husband Xiaozong Liu in 2009 that’s now assessed at C$5.6 million ($4.2 million), according to property records and an affidavit by Meng read aloud in court. In 2016 they bought a second property, a brick-and-glass mansion set in a 21,000-square-foot lot assessed at C$16.3 million. Purchased with mortgages from HSBC, she’s offered to post the family’s equity in both as part of her bail.

Meng and Liu live in Shenzhen with their 10-year-old daughter. She also has three sons from a previous marriage, one of whom attends a prep school in Massachusetts. If granted bail, the family would move into one of their Vancouver homes and the son in Massachusetts would join them for Christmas, Meng’s lawyer told the court.


Meng WanzhouPhotographer: Dennis Zhe/Huawei Technologies Co.

Three of her four children have done part of their schooling in Vancouver, and they still spend weeks -- sometimes months -- in the city during summer. Meng, who also goes by the names Sabrina and Cathy, holds two passports, one from China and one from Hong Kong, and until 2009 also had Canadian permanent residency.


Her defense argues that those ties are substantive, and proposes she wait it out at one of her houses, under surveillance, tagged by a GPS device, and subject to unannounced police checks.

“She would not flee,” Meng’s defense lawyer David Martin responded. “She has a home here.”
Meng is the daughter of Huawei’s founder Ren Zhengfei, whose net worth was estimated at $3.2 billion, according to Gibb-Carsley. A million-dollar bail to that family is equivalent to a C$156 bail for an upper-middle class Canadian family with C$500,000 in assets, he said.

“I’m not saying that wealthy people can’t get bail,” said Gibb-Carsley. “But I’m saying in terms of magnitude to feel the pull of bail, we are in a different universe.” - Bloomberg


Sabrina Meng in her own words: Huawei CFO cites health problems in her bid to secure bail in Canada

 The US is seeking to extradite Meng in relation to Huawei’s alleged use of an unofficial subsidiary, Skycom, to skirt sanctions on Iran

Sabrina Meng Wanzhou, the chief financial officer of Chinese telecommunications giant Huawei Technologies, was arrested last Friday in Vancouver, Canada at the request of the US and accused of fraudulently representing the company to get around US and EU sanctions on Iran.

The US is seeking to extradite Meng in relation to Huawei’s alleged use of an unofficial subsidiary, Skycom, to skirt the sanctions, a lawyer representing the Canadian government said. Meng was arrested at Vancouver International Airport on December 1 as she changed planes and has been detained ever since.

Meng, a daughter of Huawei founder Ren Zhengfei, attended the British Columbia Supreme Court last Friday for a bail hearing, as the US seeks her extradition on fraud charges. The hearing ended without a decision and will continue on Monday.

Ahead of the continuation, here are some of the details of Meng’s personal affidavit filed with the Supreme Court:

• Meng describes herself as a 46-year old Chinese citizen, holding a Hong Kong and Chinese passport, who lives in Shenzhen. 


• Meng says her family have extensive ties to Canada, and Vancouver in particular.


• Although Meng relinquished permanent resident status in Canada, she says her family have bought two homes in Vancouver.


• Those two homes include a property bought in 2009 with her husband at 4005 28th Street, and another at 1603 Matthews Street in 2016.


• Meng says she tries to spend at least 2-3 weeks in Vancouver every summer. Since 2012 her children, who attended school in Vancouver, no longer live there.


• After being detained and interrogated at Vancouver International Airport on Friday, Meng says she was taken to Richmond General Hospital after feeling unwell due to severe hypertension, a condition she has struggled with “for years”.


• Meng says she continues to feel unwell and is worried about her health “deteriorating” while she is incarcerated. Meng says she has had numerous health problems throughout her life, including thyroid cancer, for which she underwent surgery in 2011.


• In May 2018, Meng says she had surgery to remedy health issues related to sleep apnoea and still has difficulty eating solid foods – which has caused her to modify her diet. She has received daily packages of medicines from her doctor for years to treat her ailments.


• Meng points out she has no previous criminal record in China or anywhere else.


• If she is granted bail, Meng offers to surrender both her passports, to live at her home at 4005 28th Street, to have her family live with her as permitted by Canada’s immigration laws, she is willing to pledge the equity of either or both her houses as security, or to make a cash deposit as directed by the court.


• Meng says she would not breach any bail conditions because of the reputational damage it could do to Huawei, the company her father founded.


• Finally, Meng says she is innocent of the allegations levelled against her and will contest the allegations at trial in the US if she is ultimately surrendered.

Case: In the matter of the Extradition Act, S.C. 1999, c. 18 as amended in the matter of the Attorney General of Canada on behalf of the United States of America and Wanzhou Meng, also known as “Cathy Meng” and “Sabrina Meng”.. - South China Morning Post
 

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Great news and why Washington is harboring so much envy and hatred against China.

After watching the video "National Sovereign Network IPV9 officially unveiled", I realized why cyber security is national security and what enabled the US Government to amass so much wealth from every other country in the world.

Day after day and each time we surf the internet, read our emails, WeChat, QQ, WhatsApp, etc., and use WiFi for whatever reasons including video streaming on smartphones and smartTVs, we have to use the United States Internet protocol IPV4. This is the parent server and the main root server for WWW or the worldwide Internet.

China had signed an agreement with the United States to rent the worldwide Internet for 20 years from the year 2000. Every year, China and the rest of the world have been, and currently still pay rents to the United States monopoly. The annual rents are increasing with the ever rising increase in usage, including 500 billion in 2007 and 1.8 trillion in 2017. By the end of 2020, it is estimated to be even more which is only the rent from China alone! Every other country in the world are also paying rents for Internet usage to the US. How much is that transfer of wealth! How can a country not be rich when it possesses such a humungus monopoly? If the ordinary American people ain’t receiving a share of this fabulous windfall, then their country’s elites like Trump, Clinton, Bush, Wall Street banksters like Goldman Sachs, etc., can perhaps be made to divulge their secret.

Thankfully for China (also quite likely for Third World countries) by 2014, China independently developed the IPV9 parent server and the main root server with independent intellectual property rights. Having achieved this quantum leap, China tried to negotiate with the United States to introduce to the world its new IPV9 protocol. Not surprisingly, it was rejected.

Then in 2015, a team of Chinese delegation of technological experts unveiled and gave a test introduction of IPV9 to members of the UN General Assembly. The team of experts were able to prove that both the security and quality of IPV9 far exceeded that of the United States’s IPV4 and IPV6.

The two nations were then given the opportunity to present their case at the end of which the UN Assembly voted overwhelmingly in favor of China’s IPV9.

After further discussions, the UN General Assembly handed over management of the worldwide internet to China for 100 years. That is to say, when the current lease with the US expires in 2020, China will assume leadership and management of the worldwide internet with its superlative IPV9 parent server and the main root server.

All the receiving and transmitting stations in China have now been completed. To date, 25 countries have signed lease agreements with China with the rest of the world to follow. In 2019, IPV9 will be put into trial operation. When the lease with the US expires in 2020, the old and outdated American IPV4 will be closed and China's new generation Internet, namely the “Internet of Things IPV9”, will be up and running. If Internet IPV4 and IPV6 made the United States brilliant, then the Internet of Things IPV9 will bring immense glory and blessings to China and the rest of the world for the next hundred years!

Quantum Computing, AI and Blockchain: The Future of IT - Talks at Google

https://youtu.be/MozDSajpLTY

Prof. Shoucheng Zhang discusses three pillars of information technology: quantum computing, AI and blockchain. He presents the fundamentals of crypto-economic science, and answers questions such as: What is the intrinsic value of a medium of exchange? What is the value of consensus and how does it emerge? How can math be used to create distributed self-organizing consensus networks to create a data-marketplace for AI and machine learning?

Prof. Zhang is the JG Jackson and CJ Wood professor of physics at Stanford University. He is a member of the US National Academy of Science, the American Academy of Arts and Sciences and a foreign member of the Chinese Academy of Sciences. He discovered a new state of matter called topological insulator in which electrons can conduct along the edge without dissipation, enabling a new generation of electronic devices with much lower power consumption. For this ground breaking work he received numerous international awards, including the Buckley Prize, the Dirac Medal and Prize, the Europhysics Prize, the Physics Frontiers Prize and the Benjamin Franklin Medal.

He is also the founding chairman of DHVC venture capital fund, which invests in AI, blockchain, mobile internet, big data, AR/VR, genomics and precision medicine, sharing economy and robotics.


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Uncertain future: In this courtroom sketch, Meng sits beside a translator during a bail hearing in Vancouver. She faces extradition to the US on charges of trying to evade US sanctions on Iran. – AP 

The arrest of Huawei 'heiress' has thrown a rare spotlight on the family of the reclusive smartphone giant founder, Ren Zhengfei.

WHEN Huawei CFO Sabrina Meng Wanzhou appeared on Wednesday in a Vancouver courtroom, clad in an unbranded green tracksuit, the moment was witnessed by a single reporter from the local Vancouver Sun newspaper who happened to notice her name on the hearings list that morning.

By the end of the day, Meng’s arrest in Canada at the request of Washington was the biggest story in the world.

And when her bail hearing resumed on Friday, Meng entered court to see about 100 reporters, craning to look at her through two layers of bulletproof glass.

Meng who faces extradition to the United States, was charged for helping Huawei allegedly cover up violations of US sanctions on Iran.

Like many top Chinese executives, Meng is a mysterious figure even in her home country, but the 46-year-old chief financial officer of Huawei Technologies had been widely tipped to one day take the helm of the tech giant her father founded.

That was until her shock arrest, a move that has entangled her in the protracted diplomatic tensions between Washington and Beijing.

Crucially, Meng is the daughter of Huawei founder Ren Zhengfei – one of China’s leading businessmen, an ex-People’s Liberation Army officer and an elected member of the 12th National Congress of the Communist Party of China.

In other words, Meng is part of China’s elite.

Her father Ren moves in the highest government circles in China and founded Huawei in 1988, after he retired from the Chinese armed forces. Born into a rural family in a remote mountainous town in the southwestern province of Guizhou, Ren rose to the equivalent rank of a deputy regimental chief in the PLA and served until 1983, according to his official Huawei biography.

Officials in some governments, particularly the United States, have voiced concern that his company is close to the Chinese military and government. Huawei has repeatedly insisted Beijing has no influence over it.

Ren is one of the most watched entrepreneurs in China and was on Time magazine’s list of 100 most influential people in the world in 2005 and again in 2013.

But like his elder daughter, Ren has largely kept a low profile.

Ren has married three times. His first wife was Meng Jun, daughter of a former senior official in Sichuan province, Meng Dongbuo; she bore Ren two children: Sabrina Meng Wanzhou and a son, Meng Ping.

Meng’s current wife is Yao Ling, who gave him a younger daughter, Annabel Yao, 20. In a rare move, the three posed last month for a family photoshoot for French lifestyle magazine Paris Match. Annabel, a Harvard computer science student, became a sensation at last month’s Le Bal des Debutantes (or Crillon Ball) in Paris.

Ren’s third wife is Su Wei who, according to Chinese media reports, is a millennial who was formerly his secretary.

Interestingly, all his children opted not to take on their father’s surname – Meng adopted her mother’s surname after her parents divorced. According to Chinese news websites, Meng’s brother Ping, who also works for Huawei, followed her in taking their mother’s surname to “avoid unnecessary attention” – though the son was also known as Ren Ping in the past.

(This practice is not uncommon among the families of China’s elite. The co-founder of Chinese auction house China Guardian, Wang Yannan, opted not to take her father’s surname – she is the daughter of late Chinese premier Zhao Ziyang.)

Born in 1972, Meng joined the company in 1993, obtained a master’s degree from Huazhong University of Science and Technology in 1998, and rose up the ranks over the years, mostly holding financial roles.

In her first media appearance before the Chinese press in 2013, Meng said she had first joined the company as a secretary“whose job was just to take calls”.

In the interview with China’s 21st Century Business Herald, Meng said she began her first job at China Construction Bank after graduating with her first degree in 1992.

Arrested Meng: Like her father, the Huawei CFO had led a quiet life, out of the spotlight. – Reuters

“I joined Huawei one year later because a branch closed its operations due to the business integration [of CCB],” said Meng, describing her early jobs in Huawei as “very trivial”.

Meng has served in various roles at the company since, until her latest role as the Hong Kong-based CFO of Huawei.

In 2003, Meng established Huawei’s globally unified finance organisation, with standardised structures, financial processes, financial systems, and IT platforms.

Since 2005, Meng has led the founding of five shared service centers around the world, and she was also the driver behind completion of a global payment center in Shenzhen, China. These centres have boosted Huawei’s accounting efficiency and monitoring quality, providing accounting services to sustain the company’s rapid overseas expansion.

Meng has also been in charge of the integrated financial services (IFS) transformation program, an eight-year partnership between Huawei and IBM since 2007. This has helped Huawei develop its data systems and rules for resource allocation, and improve operating efficiency and internal controls.

In recent years, Meng has focused on advancing detailed financial management at Huawei, working to align these efforts with the company’s long-term development plans.

Meng’s importance at Huawei became apparent in 2011, when she was first named as a board member. Company insiders describe her as capable and hardworking. Earlier this year, Huawei promoted Meng, to vice-chairwoman as part of a broader reshuffle. Meng is one of four executives who hold the vice-chair role, while retaining her CFO position. Despite assertions by Ren that none of his family members would succeed him in the top job, it is widely speculated that she was being groomed to take over the reins of the company eventually.

Married with a son and a daughter, Meng’s revelation that her husband did not work in the industry, dispelled the speculation she was married to a senior Huawei executive.

Meng did not conduct public interviews before 2013 and has seldom mentioned her personal life until recently, when she used her son to illustrate the importance of persistence.

“My son did not want to go swimming one day and he almost knelt on the ground and begged my husband so that he would not have to go. But he was rejected,” Meng said in a speech at Chongqing international school in 2016. “Now my son is proud to represent his school in swimming competitions.”

Meng recently made a speech at a Singapore academic conference in 2018, in which she talked of Huawei’s future role in technology development.

“Without universities, the world would be left in darkness. Without industry, science would be left in the ivory tower,” said Meng. “The fourth industrial revolution is on the horizon and artificial intelligence is one of its core enabling technologies. Huawei is lucky to be part of it.”

While her brother, Meng Ping, as well as her father’s younger brother and his current wife all work at Huawei and related companies, none has held such senior management roles.

“The other family members are in the back office, Sabrina is CFO and sits on the board,” a Huawei source said. “So she is viewed as the boss’s most likely successor.”

But her fate now is uncertain.

She faces up to 30 years’ jail for the alleged crime. Her lawyer in Canada, David Martin, had told the court that Meng posed no flight risk and should be granted bail. To flee would shame her in front of her father and all of China, said Martin.

“Her father would not recognise her. Her colleagues would hold her in contempt. She would be a pariah,” he said.

Meng leaned forward in her seat and dabbed at her eyes with a tissue.

When the hearing adjourned, she was led away with her head bowed, a goldfish in a bowl that is the biggest story in the world. – South China Morning Post

Younger Huawei daughter: ‘I’m just a normal girl’

Arresting Yao: ‘My daily life is actually pretty boring compared to this.’

JUST last month, the reclusive Huawei founder Ren Zhengfei made headlines by appearing in French lifestyle magazine Paris Match with his younger daughter and current wife.

The daughter, Annabel Yao, 20, posed with a smile in front of a grand piano with her mother, identified by the magazine as Yao Ling, and Ren, who wore a blue shirt with his hand resting on her shoulder.

Suddenly, the whole family are making headlines again – even if for quite different reasons.

Few outsiders had previously heard of the younger daughter, a Harvard computer science student and ballerina. But Yao recently made a high-profile appearance at the exclusive Le Bal Debutante ball in Paris.

While Le Bal des Debutantes in Paris each year is a nod to the tradition of young society ladies entering the elite social scene of Europe, these days it courts modern debutantes, aged 16 to 21, who are chosen for their looks, brains and famous parents – prominent in business, entertainment and politics.

They parade in glamorous couture gowns, waltz with their cavaliers – young men who accompany the “debs” for the evening – and take part in photo shoots and interviews.

The schedule at the event, organised by Ophélie Renouard, is full of young women such as Baroness Ludmilla von Oppenheim, from Germany; Julia McCaw, daughter of AT&T founder Craig McCaw; and Yao – one of three debutantes chosen for the opening waltz this year.

“I definitely treated this as a debut to the world,” said Yao after the ball. “From now on, I’ll no longer be this girl living in her own world, I’ll be stepping into the adult world where I have to watch my own actions and have my actions be watched by others.”

Today’s Le Bal, is a diverse affair, a microcosm of the shifting tides of the global elite. Of the 19 debutantes of 2018, there were young ladies from India and America, Europeans from Portugal, France, Belgium and Germany, as well as Hong Kong’s Angel Lee, Kayla Uytengsu from the Philippines and China’s Yao.

Yao – who has lived in Britain, Hong Kong and Shanghai – was one of several Chinese debutantes in recent years. Hollywood offspring, such as the daughters of actors Forest Whitaker, Bruce Willis and Sylvester Stallone, have also become Le Bal regulars.

“All the girls were down-to-earth, easygoing, helpful and outgoing. No one was pretentious,” said Yao.

“All of them attended top universities or high schools like Stanford, Brown and Columbia, so it’s a group of girls who are privileged, but also work really hard.”

 
Diverse affair: Today’s ‘Le Bal’ is a microcosm of the shifting tides of the global elite like Yao (far right, front row).

As they swapped their jeans for tiaras and couture gowns and trade teenage antics for waltzing, the girls got to play fairytale princesses for three days and make their grand debut in high society.

They all arrived in Paris two days before the ball to meet, socialise with other girls and their cavaliers (Yao’s cavalier was the young Count Gaspard de Limburg-Stirum), rehearse and take part in portrait sessions.

Girls are given questionnaires about the fashion styles they like, and then choose from a selection. Yao donned a champagne gold J Mendel gown.

“An American designer with a very French style I wanted something modern,” she said. “I’m not super girlie inside, so I prefer something more chic and not so princessy It’s very elegant, and I’m not a fan of very [strongly] pigmented hues. I also loved the tulle texture of the dress, as it reminds me of a ballerina.”

“I definitely feel very honoured to be included, as there are only 19 girls in the world this year,” Yao added. “It means I have to work harder, try to accomplish great things in my life and be a role model for other girls.”

She said: “As people who have more privilege than others, it’s more important for us to help those with less opportunity. I want to get involved in philanthropy and charity I still consider myself a normal girl; it’s important for me to work hard and better myself every day.

“My daily life is actually pretty boring compared to this. I usually live like a normal student.”

Computer science is a heavy subject with a high workload, so she studies a lot. Her spare time is often taken up at the Harvard Ballet company (she’s been dancing since childhood). “I try to dance as much as possible,” she said.

A quick glance at the Ivy League student’s social media shows her jetting around the world wearing Dior, Louis Vuitton and Saint Laurent, but she’s quick to show her serious side. This summer, she did an internship at Microsoft “on a team focusing on machine learning and image recognition”.

However, she noted: “As much as I enjoy coding, I enjoy personal interactions a lot I have a passion for fashion, PR and entertainment.”

In the future, she sees herself working on the business side of technology. “I’ll try to integrate the tech knowledge I have,” she said. “I don’t think I’ll be a software engineer but maybe I’ll be more on the management side. I enjoy building connections.” – South China Morning Post

Growing stronger, opening wider key to resolving Huawei crisis

Huawei is now facing its most severe test since it became the world-renowned innovative tech company.

With executive's arrest, US wants to stifle Huawei

The Chinese government should seriously go behind the US tendency to abuse legal procedures to suppress China's high-tech enterprises. It should increase interaction with the US and exert pressure when necessary. China has been exercising restraint, but the US cannot act recklessly. US President Donald Trump should rein in the hostile activities of some Americans who may imperil Sino-US relations. 

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In custody: A profile of Meng is displayed on a computer at a Huawei store in Beijing. The Chinese government, speaking through its embassy in Canada, strenuously objected to the arrest, and demanded Meng’s immediate release.
— AP