The U.S. has given in to the Chinese demand to end its hostage holding of Huawei CFO Meng Wanzhou:
A plane believed to be carrying Chinese tech executive Meng Wanzhou took off from the Vancouver airport on Friday, marking a new stage in a legal saga that ensnared Canada — and two of its citizens — in a dispute between the U.S. and Chinese governments.
A B.C. court decided on Friday that the extradition case against Meng would be dropped after the Huawei chief financial officer reached a deferred prosecution agreement with the U.S. government.
Michael Spavor and Michael Kovrig, the two Canadian citizens who were detained in China just days after Meng's arrest in Vancouver, are now on their way back Canada, Prime Minister Justin Trudeau confirmed on Friday evening.
The U.S. had accused Meng Wanzhou of misleading the opium dealer bank HSBC about Huawei's relation with a local entity in Iran. This, the U.S. claimed, had led to breach by HSBC of its unilateral sanctions against Iran.
This was a constructed crime with the only evidence being some wording on one page of a longer power point slideshow which Meng Wanzhou surely had not edited herself.
The deferred prosecution agreement seems to admit that:
As part of her arrangement with U.S. prosecutors, Meng pleaded not guilty in a court Friday to multiple fraud charges.
The Huawei chief financial officer entered the plea during a virtual appearance in a New York courtroom. She was charged with bank fraud, wire fraud and conspiracies to commit bank and wire fraud more than two and a half years ago.
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The agreed statement of facts from Friday's U.S. court appearance said that Meng told a global financial institution that a company operating in Iran in violation of U.S. sanctions was a "local partner" of Huawei when in fact it was a subsidiary of Huawei.
The deferred prosecution agreement does not included any admission of wrongdoing, just an agreement on the facts.
The whole case was constructed and the arrest arranged by John Bolton when he was National Security Advisor under then President Donald Trump:
The Trudeau adviser said Mr. Bolton and other like-minded officials in the U.S. government were well aware of the significance of the arrest they were asking Canada to make. The adviser and a senior national-security official say they are convinced the U.S. picked Canada to arrest Ms. Meng – and did so in a last-minute rush – because they believed the Justice Department and the RCMP would honour the extradition request.
Trump then used Meng Wanzhou as bargaining chip in his trade fight with China:
Trump has linked resolution of the U.S. government’s dealings with Huawei to a potential trade agreement with China. He has said he would consider Huawei’s role in a trade deal at the final stage of negotiations, the court application says.
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“Prejudice to the fairness of these proceedings is made out by the president’s repeated assertions that (Meng’s) liberty is effectively a bargaining chip in what he sees as the biggest trade deal ever.”
The case gave Canada a lot of headache as China had arrested two of its spies just days after Canada had followed the U.S. request to arrest Meng Wanzhou. Canada has denied that Michael Spavor and Michael Kovrig were spying for its services. However, Canada's main spy agency, the Canadian Security Intelligence Service, welcomed the release of its boys:
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During a July visit to China U.S. Deputy Secretary of State Wendy Sherman had been given two lists of issues that China demanded to be solved before it was willing to cooperate further with the U.S.:
In the List of U.S. Wrongdoings that Must Stop, China urged the United States to unconditionally revoke the visa restrictions over Communist Party of China (CPC) members and their families, revoke sanctions on Chinese leaders, officials and government agencies, and remove visa restrictions on Chinese students.
China also urged the United States to stop suppressing Chinese enterprises, stop harassing Chinese students, stop suppressing the Confucius Institutes, revoke the registration of Chinese media outlets as "foreign agents" or "foreign missions", and revoke the extradition request for Meng Wanzhou.
China sees the end of the Meng Wanzhou issue as a victory:
The high-profile case of Meng, which has become a political dilemma significantly affecting the global geopolitical landscape, has been settled through both legal channels and political wrestling, experts said, noting that China, the US and Canada have seen the best scenario with much compromise made by the Biden administration in resolving the matter. It also helped pave the way for the positive interaction between the world's largest economies in the near future amid strained China-US relations.
It was also one mistake of the US administration that has been corrected in line with the request of China, as China put forward two lists to the US during the bilateral talks in Tianjin in July, including the List of US Wrongdoings that Must Stop which urged the US to release Meng, showing that Beijing's US policies began taking effect and remaining mistakes of the US have to be corrected.
Commentator Pepe Escobar however, does not believe that the release of Meng Wanzhou will change much if anything:
Pepe Escobar @RealPepeEscobar – 11:49 UTC · Sep 25, 2021
MENG WANZHOU
– political kidnapping masked as criminal prosecution
– part of the demonization of Huawei
– near 3-year illegal detention
– fake charges
– “Justice” Dept. had to drop extradition request
– Hybrid War continues
While I agree that U.S. aggression against China will continue I do see this as a Chinese victory. China has disabled one of the weapons that U.S. had used against it. From now on no country will risk to follow a U.S. requests to arrest a Chinese citizen:
The swiftness of the apparent deal also stands as a warning to leaders in other countries that the Chinese government can be boldly transactional with foreign nationals, said Donald C. Clarke, a law professor specializing in China at George Washington University’s Law School.
“They’re not even making a pretense of a pretense that this was anything but a straight hostage situation,” he said of the two Canadians, who stood trial on spying charges. Mr. Spavor was sentenced last month to 11 years in prison, and Mr. Kovrig was waiting for a verdict in his case after trial in March.
“In a sense, China has strengthened its bargaining position in future negotiations like this,” Professor Clarke said. “They’re saying, if you give them what they want, they will deliver as agreed.”
The U.S. had, via Canada, taken Meng Wanzhou as a hostage. China replicated that by taking two Canadian citizens as hostages, thereby putting the pressure on the weaker power involved. It also stopped imports of Canadian canola and pork. No government will want to repeat the experience of the Canadian one.
It worked and the people of Chinese are happy with the result:
The sentiment of patriotism prevailed at the scene. After the short speech, Meng waved to the crowds holding Chinese flags to welcome her at the airport, with a big smile, while singing a song for the motherland together with people at the scene.
People were still singing after Meng rode the bus to undergo epidemic prevention inspection at the request of Chinese Customs.
Groups of people, who wore protective suits, held flowers and welcome banners as they waited on the parking apron at the airport, as Chinese port cities have adopted strict epidemic prevention measures against COVID-19. Local media reports said earlier that Meng was expected to follow the 14 plus 7 days of quarantine following her arrival.
So this is indeed a victory but in a minor battle and in a war that is likely to see much bigger ones.