Huawei Freezes Orders From Japan Supplier After CFO Arrest

The surprise December 1 arrest of Huawei Technologies’ Chief Financial Officer Meng Wanzhou is about to affect one of the Chinese company’s suppliers in Japan.

Yaskawa Electric, which supplies industrial robots for Huawei’s smartphone and telecom gear factories, saw all orders for its machines put on hold after the arrest, President Hiroshi Ogasawara said in an interview on Wednesday. Of Yaskawa’s $4 billion (JPY 448.5 billion) in revenue for the fiscal year that ended in February, 23 percent came from China.

“My people on the ground in China say that Huawei is turned upside down internally,” Ogasawara said. “All kinds of capex deals are temporarily on hold as they figure things out.”

Yaskawa’s stock fell as much as 4 percent before ending the day mostly unchanged. Shares of other factory automation companies Fanuc Corp., SMC Corp. and Nabtesco Corp. pared gains after the news emerged. A Huawei spokesman said the Chinese company makes decisions on gear purchases months in advance.

“Decisions relating to procurement for this type of equipment were made several months ago,” a spokesman said by email. “Huawei is unable to intervene in decisions made by other supply chain partners including companies with which we have outsourcing arrangements.”

Meng was arrested in Vancouver at the request of US authorities for allegedly violating sanctions related to selling technology to Iran. While her detention has become an international incident, this is the first indication that it is beginning to affect Huawei’s operations. The arrest has further undermined the international standing of the company, which was already under suspicion in the West because of its ties to the Chinese government.

Separately, the Japanese media reported earlier this week that the country’s top three carriers – NTT Docomo, SoftBank Group Corp., and KDDI Corp. – will ban telecommunications equipment by Huawei and ZTE Corp. France’s Orange SA said it does not plan to work with Huawei to build its fifth-generation mobile network.

The order freeze is making Yaskawa reconsider its outlook on the timing of demand for 5G phones and communications equipment, because Huawei was at the forefront of the technology’s rollout, Ogasawara said.

Key Insights
– Yaskawa said in October it expects memory chip manufacturers to start making capital investments related to 5G in the spring and see a boost in its own machinery orders by early next year. That outlook is now uncertain because of the events at Huawei, Ogasawara said.

– The Huawei incident and trade tensions with US are not likely to derail 5G’s rollout in China, he said. The deployment is driven by China’s national policy and orders for internal demand will make up for any losses due to trade barriers, he said.

– Yaskawa has three factories in China, all of which make machines for domestic customers.

– Global smartphone output is not likely to decline, but capital investment is likely to remain flat until 5G demand kicks in second half of 2019, Ogasawara said.

© 2018 Bloomberg LP

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Mumbai Police Arrest One More Person In Rajeshwar Udani, Diamond Trader’s Murder


One more person was arrested Wednesday in connection with the kidnapping and killing of diamond trader Rajeshwar Udani. The accused, identified as Shidesh Patil, 23, was a friend of the main accused Sachin Pawar, a senior official said.

Patil’s exact role in the crime was being probed, he said.

The police have thus arrested seven persons in the case so far.

Rajeshwar Udani, resident of suburban Ghatkopar, went missing on November 28 and his decomposed body was found in Panvel in neighbouring Raigad district last Friday.

An autopsy revealed that he had fractures and the death had been caused by strangulation.

Police arrested Mahesh Bhoisar, 31, Nikhat alias Jhara Khan, 20 and Saista Sarwar Khan, 41, in the case Tuesday.

Others arrested in the case included Sachin Pawar, former personal assistant of a Maharashtra minister, Dinesh Pawar, a suspended police constable earlier arrested in a rape case, and Pranit Joma Bhoi.

According to the police, the killing was the fall-out of a monetary dispute between Sachin Pawar and the victim.

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British Police Arrest Man Inside The Grounds Of Parliament

Armed police taser a man inside the grounds of the Houses of Parliament in London


Armed British police used a Taser stun gun to restrain a man after he ran into the grounds of parliament on Tuesday, close to where an officer was stabbed to death last year, and ignored warnings to stop.

“Stop. Get down,” police shouted at the man shortly before noon just inside parliament’s main Carriage Gates, a Reuters photographer who witnessed the incident said.

Reuters pictures showed armed police using the Taser stun gun on the man on the cobbled forecourt outside parliament. He was later handcuffed as police pointed a gun at his head.

“The man was subsequently arrested on suspicion of trespassing at a protected site, and taken to a police station where he remains,” police said in a statement.


Armed police detain a man after tasering him inside the grounds of the Houses of Parliament in London

The arrested man will have a mental health assessment.”

The incident, which is not being treated as terrorism, happened near where 52-year-old Khalid Masood stabbed an unarmed police officer to death in March 2017 after killing four people on nearby Westminster Bridge. He was shot dead.

In August, a man was arrested after driving a car into pedestrians and cyclists before ramming into barriers outside the parliament building in what police said appeared to be a terrorism attack.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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After Executive’s Arrest, China Warns Against Bullying Of Citizens

Huawei Executive Meng Wanzhou faces a possible extradition to the US.


China’s foreign minister warned Tuesday against the “bullying” of any Chinese citizen, amid a diplomatic fracas over the arrest of a Huawei executive on a US warrant in Canada.

Meng Wanzhou, the chief financial officer of telecommunications behemoth Huawei, was on December 1 arrested in Vancouver on US fraud charges related to sanctions-breaking dealings with Iran, infuriating China.

“The safety and security of Chinese compatriots are our priority, China will never sit idly by and ignore any bullying that violates the legitimate rights and interests of Chinese citizens,” Foreign Minister Wang Yi said in a speech in Beijing, without directly referring to the Huawei case.

“We will fully safeguard the legitimate rights of Chinese citizens and return fairness and justice to the world,” he said at the opening of a diplomatic symposium.

The detention has raised tensions following a truce in the US-China trade war, with Beijing summoning both the Canadian and US ambassadors over the weekend.

Meng, who faces a possible extradition to the United States, is seeking her release on bail from a court in Vancouver.

China has accused Canada of treating Meng in an “inhumane” manner, citing reports in Chinese state-run media alleging she was not given adequate medical care.

Beijing has also claimed that the Chinese embassy was not immediately notified of her arrest.

“The Canadian government did not do this and the Chinese government learned this through other channels,” foreign ministry spokesman Lu Kang said at a daily briefing.

In his speech, Wang also touched on tensions with the US, calling on Washington to stop seeing trade between the countries as a “zero-sum game”.

“Take a more positive look at China’s development, and constantly expand the space and prospects for mutual benefit,” he said.

“There is no need to artificially create new opponents, and an even greater need to avoid self-fulfilling prophecies.”

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Huawei CFO Arrest: Europe Should Be Wary of Huawei, EU Tech Official Says

The European Union should be worried about Huawei and other Chinese technology companies because of the risk they pose to the bloc’s industry and security, the EU’s technology chief said on Friday, echoing concerns raised elsewhere in the world.

Huawei expressed disappointment at EU tech commissioner Andrus Ansip’s comments, saying it had never been asked to install technology that could be used for spying and never would.

“Do we have to be worried about Huawei or other Chinese companies? Yes, I think we have to be worried about those companies,” Ansip told a news conference in Brussels, days after a top executive at Huawei was arrested in Canada as part of an investigation into alleged bank fraud.

Huawei, which generated $93 billion (roughly Rs. 6.7 lakh crores) in revenue last year and is seen as a national champion in China, faces intense scrutiny from many Western nations over its ties to China’s government.

Ansip said he was concerned because Chinese technology companies were required to cooperate with Chinese intelligence services, such as on “mandatory back doors” to allow access to encrypted data.

He also said the companies produced chips that could be used “to get our secrets”.

“As normal, ordinary people we have to be afraid,” he said, adding he did not have enough information about the recent arrest in Canada.

Huawei called such comments misunderstandings and denied it posed a security threat.

“Huawei has never been asked by any government to build any backdoors or interrupt any networks, and we would never tolerate such behaviour by any of our staff,” the company said in a statement.

“Cyber-security needs to be addressed jointly at a global level, and equipment vendors should not be treated differently based on their country of origin. Singling out one vendor does nothing to help the industry identify and address cyber-security threats more effectively,” it said.

Separately, sources with knowledge of the matter said on Friday Huawei would spend $2 billion as part of efforts to address security issues raised in a British government report earlier this year.

Germany, meanwhile, said it opposed excluding any manufacturers from the planned construction of 5G mobile networks.

However, Belgian newspapers L’Echo and De Tijd reported the country’s centre for cybersecurity was considering the possibility of banning Huawei in Belgium. The company supplies equipment to telecom providers Proximus and Orange Belgium.

The centre was not immediately reachable for comment.

The EU as a whole is braced to launch a far-reaching system to coordinate scrutiny of foreign investments into Europe following a surge of Chinese investments and concerns about security and forced technology transfer.

However, the arrest in Canada of Huawei chief financial officer Meng Wanzhou relates to a US investigation into an alleged scheme to use the global banking system to evade US sanctions against Iran, people familiar with the probe told Reuters.

Europeans too could potentially face prosecution in the United States, which has withdrawn from an agreement with Iran on its nuclear programme. Reimposed US sanctions have already forced many European companies to stop trading with Iran.

Meng was due to appear in a court on Friday as she awaits a possible extradition to the United States.

© Thomson Reuters 2018

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China To Canada Over “Nasty” Arrest

Meng Wanzhou, Huawei’s global chief financial officer, was arrested in Canada and faces extradition to US


China warned Canada on Saturday that there would be severe consequences if it did not immediately release Huawei Technologies Co Ltd’s chief financial officer, calling the case “extremely nasty.”

Meng Wanzhou, Huawei’s global chief financial officer, was arrested in Canada on Dec. 1 and faces extradition to the United States, which alleges that she covered up her company’s links to a firm that tried to sell equipment to Iran despite sanctions.

The executive is the daughter of the founder of Huawei.

If extradited to the United States, Meng would face charges of conspiracy to defraud multiple financial institutions, a Canadian court heard on Friday, with a maximum sentence of 30 years for each charge.

No decision was reached at the extradition hearing after nearly six hours of arguments and counter-arguments, and the hearing was adjourned until Monday.

In a short statement, China’s Foreign Ministry said that Vice Foreign Minister Le Yucheng had issued the warning to release Meng to Canada’s ambassador in Beijing, summoning him to lodge a “strong protest.”

Adam Austen, a spokesman for Canadian Foreign Minister Chrystia Freeland, said Saturday there is “nothing to add beyond what the Minister said yesterday”.

Freeland told reporters on Friday that relationship with China is important and valued, and Canada’s ambassador in Beijing has assured Chinese that consular access will be provided to Meng.

When asked about the possible Chinese backlash after the arrest of Huawei’s CFO, Prime Minister Justin Trudeau told reporters on Friday that Canada has a very good relationship with Beijing.

Canada’s arrest of Meng at the request of the United States while she was changing plane in Vancouver was a serious breach of her lawful rights, Le said.

The move “ignored the law, was unreasonable” and was in its very nature “extremely nasty,” he added.

“China strongly urges the Canadian side to immediately release the detained person, and earnestly protect their lawful, legitimate rights, otherwise Canada must accept full responsibility for the serious consequences caused.”

The statement did not elaborate.

“There will probably be a deep freeze with the Chinese in high-level visits and exchanges,” David Mulroney, former Canadian ambassador to China, said on Friday.

“The ability to talk about free trade will be put in the ice box for a while. But we’re going to have to live with that. That’s the price of dealing with a country like China.”

Meng’s arrest was on the same day that U.S. President Donald Trump met in Argentina with China’s Xi Jinping to look for ways to resolve an escalating trade war between the world’s two largest economies.

“We are tracking the developments of this case and refer you to the filings in the Supreme Court of British Columbia,” said a U.S. State Department official, speaking on condition of anonymity.

The news of Meng’s arrest has roiled stock markets and drawn condemnation from Chinese authorities, although Trump and his top economic advisers have played down its importance to trade talks after the two leaders agreed to a truce.

A Huawei spokesman said on Friday the company has “every confidence that the Canadian and U.S. legal systems will reach the right conclusion.” The company has said it complies with all applicable export control and sanctions laws and other regulations.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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In Odisha Shelter Abuse Case, Maneka Gandhi Demands Arrest Of Staff

Maneka Gandhi said the staff of the shelter homes should be put in jail. (File)


Union Women and Child Development Minister Maneka Gandhi on Sunday termed the alleged sexual exploitation of inmates at shelter homes in Odisha a matter of shame and demanded the arrest of staff involved in it.

Taking to reporters, Ms Gandhi, who was in Daman in the Union Territory of Daman and Diu, said: “Sexual exploitation was taking place in all shelter homes for children and women in Odisha, which is a matter of shame. This (a shelter home in Dhenkanal district) is not such a big place and there were not so much people that they could not check them every week or month”.

“If the case was of one or a few shelter homes, it is still understandable. But in all? The shelter homes were also being used for conversion. Then why are you running the shelter homes?” she asked.

She said the staff of the shelter homes should be put in jail and not simply sacked for “criminal” activities.

Ms Gandhi said this a day after she ordered an inspection of all shelter homes in Odisha, a fortnight after alleged sexual abuse of minor girls in such an accommodation in Dhenkanal district came to light.

An NGO-run shelter home in Dhenkanal — 106 km from the state capital Bhubaneswar — was sealed last Sunday and two people, including its managing director, had been arrested following allegations of sexual harassment of its inmates.

During her day-long tour of Daman, the minister supervised anganwadis and checked the food being served to children and pregnant women in these centres.

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China Summons US Ambassador Over Huawei Chief Financial Officer Meng Wanzhou’s Arrest

Meng Wanzhou, Huawei’s chief financial officer, was arrested in Canada and faces extradition to US (File)


China summoned the US ambassador on Sunday to protest the “extremely bad” arrest of telecom giant Huawei’s chief financial officer in Canada and demand that the United States drop its extradition request.

The arrest of Meng Wanzhou, who faces US fraud charges related to sanctions-breaking dealings with Iran, has infuriated Beijing, threatening to disrupt a trade war truce between China and the United States.

Meng — the daughter of Huawei founder Ren Zhengfei, a former engineer in China’s People’s Liberation Army — is in custody as she awaits a Canadian court’s decision on bail on Monday.

Vice Foreign Minister Le Yucheng summoned US ambassador Terry Branstad one day after he called in Canadian envoy John McCallum to voice China’s displeasure.

“Le Yucheng pointed out that the US side has seriously violated the legitimate rights and interests of Chinese citizens, and the nature of the violation is extremely bad,” the foreign ministry said in a statement.

“The Chinese side firmly opposes this and strongly urges the United States to attach great importance to China’s solemn and just position,” it said.

China also urged the United States to “take immediate measures to correct wrong practices, and revoke the arrest warrant against the Chinese citizen.

The statement warned that Beijing would make an unspecified “further response” in light of the US actions.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Europe Was Growing Wary of Huawei Even Before CFO’s Arrest

The shock arrest of Huawei Technologies’ chief financial officer comes at a crunch time in Europe, as governments decide whether to crack down on the Chinese technology giant.

Before Canadian officials detained Wanzhou Meng on December 1 over potential violations of US sanctions on Iran, officials from Britain, Germany and France were becoming increasingly wary of the telecom equipment-maker, according to people familiar with the matter.

Amid concerns of an escalating US-China trade war, America has been bringing allies onside over its long-standing fears that Huawei’s gear could enable Chinese spying. While Australia and New Zealand in recent months barred Huawei’s equipment from next-generation phone networks, Europe has yet to take decisive action.

Europe, where 5G networks will be rolled out starting next year, is a key battleground for Huawei as its largest market outside Asia, and where the company has spent more than a decade notching contracts with the likes of Deutsche Telekom AG and Vodafone Group.

“Companies are making their decisions about their core network technology,” said Ben Wood, chief of research at technology analyst CCS Insight. “Those are decisions which are implemented and then sustained for a decade, so this is a very, very important crossroads for Huawei and these kind of moves are very unhelpful, the fact that this has all blown up at this time.”

Germany’s coalition government has concerns about letting Huawei supply 5G equipment, according to people familiar with the matter. Officials are looking at potential changes to rules or standards that would affect Huawei, though it’s controversial within government, said the people, who asked not to be identified as the deliberations are private.

A representative for German’s Economics ministry declined to comment.

One German lawmaker, who attended a recent briefing by U.S. officials advocating against Huawei, said any action on the matter should wait until after the country’s 5G airwaves auction finishes in 2019 and licenses have been awarded. Germany currently has no legal basis to partially or fully exclude Huawei from supplying 5G equipment.

“Germany and the EU should not jump on Trump’s campaign against China,” said Katharina Droge, Green lawmaker responsible for trade. “Nevertheless, it is in Germany’s own interest to take the concerns about Chinese technology very seriously.”

In France, government departments are rethinking the country’s relationship with Huawei, according to people familiar with the matter. Earlier this year Digital Affairs Minister Mounir Mahjoubi said phone carriers should work with European equipment-makers.

The risk for Huawei may be greater in the UK, where the head of the foreign intelligence agency MI6 said on Monday that the government must decide if Huawei should be barred from running 5G networks.

A cybersecurity oversight board that keeps watch on Huawei’s activities in the country in July said it could no longer guarantee that equipment from the company doesn’t compromise the UK’s national security, and will meet again next week. The government is also conducting a review into the resilience of its supply chains that could lead to recommendations affecting Huawei.

“We reject any suggestion that we might pose a threat to national security,” said a spokeswoman for Huawei in an emailed statement. “Cyber-security should not be politicised, and equipment vendors should not be treated differently based on country of origin.”

Espionage concerns have long swirled around the closely-held company, run by a former military engineer. Huawei has always maintained that it’s independent and doesn’t give the government access to its equipment. It’s mounted slick lobbying campaigns to assuage political leaders in Europe and opened its operations to monitoring in markets like the UK.

With equipment seen by telecom executives as superior to that of Nokia Oyj and Ericsson AB, Huawei has managed to topple its European rivals to become the largest mobile gear supplier on the continent.

The coming of 5G technology, which will allow speeds fast enough to download a full-length movie in seconds and a range of new products and services, has security and government officials concerned that core networks will be more at risk of being hacked.

Phone carriers in Europe already split their equipment supply between the three major suppliers and could shift more of their business to the non-Chinese vendors over time, UBS analyst Tejas Venkatesh wrote Thursday in a note.

BT Group Plc is putting pressure on Huawei to address Britain’s concerns, through its role on the board chaired by intelligence agency GCHQ which oversees the company’s activities, according to telecom industry executives who spoke on condition on anonymity.

A representative for BT declined to comment.

Three UK, a unit of Hong Kong billionaire Li Ka-Shing’s CK Hutchison Holdings, has signed key 5G equipment supply contracts with Huawei and Nokia. The carrier on Thursday said it’s monitoring the situation closely but currently has no concerns about partnering with Huawei.

Telefonica Deutschland Holding AG continues to see Huawei as an important business partner, said Cornelius Rahn, a spokesman for the German carrier. “This arrest is no reason to question that relationship,” he said.

© 2018 Bloomberg LP

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Donald Trump Upbeat On China Talks; Aides Downplay Huawei Arrest Friction

“China talks are going very well,” Donald Trump said on Twitter, without providing any details (File)


U.S. President Donald Trump on Friday sounded an optimistic note about trade negotiations with China as two of his top economic advisers downplayed friction from the arrest of a senior executive of Chinese telecom equipment maker Huawei Technologies.

“China talks are going very well,” Trump said on Twitter, without providing any details.

Major companies have expressed concerns about how the arrest of Huawei Chief Financial Officer Meng Wanzhou in Canada at the request of U.S. authorities would affect U.S.-China relations or that it would cause a potential backlash against American firms operating in China.

Meng, 46, the daughter of Huawei’s founder, appeared in a Vancouver court for a bail hearing as she awaits possible extradition to the United States in the investigation of whether Huawei violated U.S. sanctions against Iran.

Larry Kudlow, director of the White House’s National Economic Council, told CNBC he did not believe Meng’s arrest would “spill over” into the talks with China aimed at increasing Beijing’s purchases of U.S. farm and energy commodities, lowering Chinese tariffs and making sweeping changes to China’s policies on intellectual property and technology transfers.

Kudlow said the investigation of whether Huawei violated U.S. sanctions against Iran was on a “separate track” from the trade talks and was a matter of national security and U.S. law.

“You can’t break the law. You break the American law, you break the Canadian law, you’ve got to pay the consequences of that,” Kudlow said of the Huawei case. “That was the case with other companies, and will continue to be the case. These are issues of national security.”

Continued concerns over U.S.-China trade relations caused stocks to sell off on Friday, with technology shares leading the decline. The Nasdaq Composite fell 2.4 percent, with the Dow Jones Industrial Average falling 2.1 percent and the S&P 500 index down 1.9 percent in afternoon trade.

White House trade adviser Peter Navarro told CNN that the U.S.-China trade talks and the Huawei arrest “are two separate events,” calling the timing of Meng’s arrest a coincidence.

Navarro said the arrest was the result of “the bad actions of Huawei,” adding there was a “frightening” risk that the Chinese government could use the company’s products for spying.

“The timing was unusual, but the actions were legitimate.”

Asked if the United States would walk away from trade talks if U.S.-China differences were not resolved in 90 days, Navaro said: “It’s not a question of walking away. It’s a question of moving forward on the strategy, which is to simply raise the tariffs” on Chinese goods.

Kudlow expressed optimism that the United States and China will make substantial progress during the 90-day period allocated for talks, ending around March 1.

“I think there will be a lot of success in the next 90 days; President has indicated, that if there’s good solid movement and there’s good action, he might – he might – be willing to extend the 90 days,” Kudlow told CNBC.

He reiterated that the Trump administration was expecting immediate movement from China on purchases of agricultural commodities and energy and added that he expected Chinese autos tariffs to be reduced. He said it was a positive sign that China was willing to discuss core issues related to intellectual property theft, forced technology transfers and computer hacking of U.S. companies.

However, Kudlow said U.S. Trade Representative Robert Lighthizer, who will lead the American side in the talks, will be looking to ensure that any agreements can be fully enforced and monitored to ensure follow-through by Beijing.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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