Friday, August 28, 2020

Re-Defining Canada's Strategic Approach to China

"There is no question that the U.S. extradition request has put Canada in a difficult position. As prime minister, you face a difficult decision. Complying with the U.S. request has greatly antagonized China,"                                                            "Removing the pressures of the extradition proceeding and the related imprisonment of the two Michaels will clear the way for Canada to freely decide and declare its position on all aspects of the Canada-China relationship."           "The two Michaels [Kovrig and Spavor; former diplomat and entrepreneur respectively] were taken in direct retaliation for the arrest in Canada of Meng Wanzhou. We believe that the two Michaels will remain in their Chinese prison cells until Meng is free to return to China."                                                                   June 23 letter to Prime Minister Trudeau, 19 signatories, former government ministers, diplomats

Meng Wanzhou, chief financial officer, Chinese telecom giant Huawei

"I would like to stress once again that things between China and Canada have come to this stage not because of China."                                                             "The Canadian side is well aware of the crux of the problem. It should take immediate and effective measures to correct the mistakes and crate conditions for bilateral relations to return to the right track."                                                             Zhao Lijian, Chinese foreign ministry spokesman

"Minister Champagne again reiterated that the cases of Michael Kovrig and Michael Spavor remain a top priority for the government of Canada and that Canada continues to call on China to immediately release both men."               Foreign Affairs Canada spokesperson

The stalemate continues. The espionage charges and imprisonment of two innocent Canadians who happened to be in the wrong place at the right time for them to be kidnapped by Chinese authorities under guise of Chinese law protecting the country from the malign influence of foreigners engaged in espionage with the intention of doing harm to China. Beijing, of course, denied time and again that the two Canadians were spirited away and imprisoned on trumped-up charges in retaliatory action against Canadian law that respected a U.S.-Canada extradition agreement when Canada was asked by the U.S. to extradite Huawei's CFO to stand trial in the U.S. on charges of fraud.

Death sentences were judicially applied to four other Canadian citizens who had been charged with drug trafficking. Chinese authorities placed a hold on its long-time importation of Canadian canola products and pork unsettling Canada's agricultural industry by cutting off export to one of the country's largest importers of Canadian grain and livestock products. All the while, the government of Canada while asking its allies to exert pressure on China for the release of the two Canadians, went about business as usual with China.

At a time of an impending global pandemic crisis, Canada sent PPE equipment to China to aid its COVID-19 emergency, then found itself entirely without that critical personal protection equipment for Canada's embattled health professionals once the SARS-CoV-2 virus made its speedy way into Canada. Then Canada signed off on a contract with Chinese pharmaceutical companies to co-test a promising coronavirus vaccine, the Chinese company in direct tandem relationship with the Chinese military.

Contracts were signed with Chinese companies for technical equipment for Canada's embassies and consulates abroad, as though Beijing wouldn't dream of using such equipment as a cyber-entry to Canada's diplomatic, trade and intelligence communities. And despite that Canada, as a member of the "Five Eyes" group of the U.S., New Zealand, the United Kingdom, and Australia, sharing intelligence, remains the only one among the five not having yet decided to exclude Huawei Technologies from its 5G network upgrade. 

Former Prime Minister Jean Chretien along with other former high-echelon parliamentarians, plumps for tighter trade relations with China, having led a number of trade delegations to China when he was prime minister, to pave the way for his private post-government plans to curry favour with Beijing, and bring high profit margins to corporations doing business with his post-government employment in a prestigious law firm, is in favour of capitulating to Beijing's demands.

Rather galling, at the very time when Beijing has chosen to surrender its pretense of rule-of-law in conjunction with international standards, admitting finally that the capture and incarceration of the two Michaels was a retaliatory act. Typically, the Peoples' Republic of China political elite speak to other countries in paternalistic chiding statements behind which lie hard threats of dangerous times ahead when other countries fail to give China its due; other nations are always invited to 'correct their mistakes' to restore China's confidence in them. The 'right track' achieved to Beijing's satisfaction.

The most recent request by Canada through its foreign affairs minister, Francois-Philippe Champagne to release the two Michaels and to commit to clemency for the four Canadians sentenced to death elicited the response making it clear that all these pressure tactics are directly related to the intention by the government of Canada to honour its international agreements, in this case an extradition request by the U.S. Beijing has slammed the door on expectations it might miraculously honour international norms in diplomacy, insisting anew that the release of Meng will automatically ensure the release of the Michaels.

A woman holds an anti-CCP sign outside of Huawei chief financial officer Meng Wanzhou’s hearing at the BC Supreme Court in Vancouver, British Columbia on Monday, May 27, 2020. (Ben Nelms/CBC)

 

 

Labels: , , , , , , , , ,

Monday, December 10, 2018

Technological Trade Impasse

"Her arrest will have phenomenal repercussions in China. The wealthy have already been worried for a long time about their safety and their wealth in America."
"If the U.S. is going to pursue corruption and extraterritorial laws, that will increase." 
"If the U.S. makes an example of Huawei, the conservative nationalist forces in China and also the military will be very unhappy, and that will make it even more difficult to make compromises with the United States."
"In the short term, the United Sates might gain from playing this card, but in the longer term, it doesn't gain from this."
"This will make it harder for the reformers to speak up."
Tao Jingzhou, corporate lawyer, Beijing, China
Who Is Meng Wanzhou?
Huawei CFO Meng Wanzhou

Federal Crown prosecutor John Gibb-Carsley has urged Justice William Ehrcke at B.C. Supreme Court to deny bail to Meng Wanzhou, chief financial officer of Huawei Technologies, daughter of the technology giant's founder, a former intelligence officer with the Chinese military. She is accused of having committed acts of fraud in a scheme meant to trick financial institutions to engage in transactions violating American sanctions against the Islamic Republic of Iran's nuclear aspirations. The prosecutor described her as a flight risk with no connections to Canada.

"At the starting point, there is an incentive to flee. Ms. Meng is charged with conspiracy to defraud multiple international financial institutions. It is a serious offence, with each offence carrying a maximum of 30 years in prison", he charged. "She has the means to flee and to remain outside Canada. Her ordinary home is in a country without an extradition treaty with the United States", he continued in a packed courtroom where international media and Chinese-Canadian community members sat side-by-side as markets responded negatively to the news.

Ms. Meng's father, Ren Zhengfei, is a fabulously wealthy man as the CEO of the most influential and prestigious tech company in China. Huawei Technologies has a vast clientele and a wide reach across the world, although its technology is outlawed in the United States as well as Australia. Suspicions are that embedded in its wares is spyware. Huawei is viewed by the U.S. as an arm of the Chinese Communist Party for intelligence-gathering purposes.

The very same time that Presidents Xi and Trump were negotiating a relaxation of their trade war in Buenos Aires, Meng was arrested on a stopover at Vancouver International Airport en route to Mexico. Were she to be granted bail she has two homes in Vancouver she can choose to stay at; both homes valued at a total of $15-million. It appears that the stress of her arrest triggered a visit to a hospital in Vancouver for hypertension.

China is outraged at her arrest and has called in the U.S. Ambassador to Beijing to discuss the warrant for her arrest which Canadian authorities had actioned for extradition.

Ms. Meng, 46, is one of China's most prominent businesswomen. She is well-travelled and cosmopolitan, fluent in English, and heir to a global technology company, the daughter of founder Ren Zhengfel, now in police custody over a week since last Saturday. Markets are on tenterhooks anticipating President Xi Jinping's response. Some in China now blame him for over-ambitious policies that had the effect of irritating the Trump administration to launch a trade war for technological superiority.

Professor of international studies Wu Xinbo at Fudan University, feels Chinese will see the arrest of Ms. Meng related to an attempt by the U.S to force China back into its traditional role of manufacturing low-end consumer goods, to prevent China from moving upward in producing advanced, valuable technological products challenging American superiority in the field.

Labels: , , ,

Follow @rheytah Tweet