Huawei CFO Meng set to be freed after signing deferred prosecution agreement with U.S.

9/24


OTTAWA — Senior Huawei executive Meng Wanzhou has signed an agreement with U.S. prosecutors that opens the door for her to return to China in a development that will have major consequences beyond North America.

a person standing in front of a building: Meng Wanzhou, chief financial officer of Huawei, leaves home to attend her extradition hearing.© Darryl Dyck/The Canadian Press Meng Wanzhou, chief financial officer of Huawei, leaves home to attend her extradition hearing.
The Chinese telecom giant’s chief financial officer appeared by virtual link Friday in a Brooklyn courtroom, where the deferred prosecution agreement, related to fraud charges against her, was presented to the judge.

The deal with the Department of Justice has resolved charges against her that underpin a U.S. extradition request at the heart of international tensions between the West and Beijing.

Canadian police arrested Meng in December 2018 at the Vancouver airport on a U.S. warrant. She’s accused of fraud in the U.S. connected to her alleged violation of American sanctions on Iran.

"Not guilty," Meng told the court through an interpreter after Judge Ann Donnelly read out the charges against her, which include conspiracy to commit wire fraud, wire fraud, conspiracy to commit bank fraud and bank fraud.

Under the agreement, prosecutors will defer the charges until Dec. 1, 2022, which is four years from the day of her arrest. After that date, the government will dismiss the charges against her as long as she complies with her obligations under the agreement.

Meng's obligations include that neither she nor her lawyers can publicly dispute the facts agreed upon or the deal is off.

The judge ordered her release on the personal recognizance bond. Once Meng makes it back to China it will likely be very difficult for U.S. authorities to lay hands on her or influence her behavior, even if she tries to at some point deny responsibility or say she was coerced into the deal.

A U.S. prosecutor told the court that the DOJ would promptly notify Canadian Justice Minister David Lametti that "it is withdrawing its request for Ms. Meng's extradition."

She is due to appear Friday before the Vancouver court at 5 p.m. ET.

Meng's fight against extradition from Canada to the U.S., which started with her arrest more than 1,000 days ago, has become a key component in the tensions between the West and Beijing.

Her arrest angered Beijing, which has been demanding her release. If Meng secures her freedom, it could be seen as a big win for Chinese President Xi Jinping.

During a July meeting between Deputy Secretary of State Wendy Sherman and China's Vice Foreign Minister Xie Feng, Beijing's list of demands included a request that the U.S. unconditionally revoke the extradition request for Meng.

Her legal team and Department of Justice officials have held talks about a possible deferred prosecution agreement since last winter.

Meng, the daughter of Huawei founder Ren Zhengfei, had previously denied any wrongdoing.

Her case has angered Beijing. The Chinese government has called the U.S. charges politically motivated and has labeled Canada as an accomplice.

Days after her arrest, then-president Donald Trump said during an interview that he would be willing to intervene in her case if it would help the U.S. land a trade deal with China or serve other American national security interests.

John Bolton, Trump's former national security adviser, has since rejected the idea that politics are involved in Meng’s case.

Meanwhile, other individuals have been caught in the middle.

Nine days after her arrest, Chinese authorities arrested two Canadians — Michael Kovrig and Michael Spavor — on espionage charges.

Spavor, an entrepreneur who introduced basketball legend Dennis Rodman to North Korean leader Kim Jong Un, was given an 11-year sentence and a court date for Kovrig’s verdict has yet to be set.

Prime Minister Justin Trudeau has called the Canadians’ arrests “arbitrary” and has pushed for their release by rallying allies — including President Joe Biden. The president pledged earlier this year to work to free the men, known colloquially in Canada as the “Two Michaels.”

According to readouts, Biden and Trudeau have discussed Kovrig and Spavor during their conversations and meetings — including on a call this week.

“Human beings are not bartering chips,” Biden said in February after a virtual summit with Trudeau. “We’re going to work together until we get their safe return.”

The ordeals of the Two Michaels have captured the attention of diplomatic circles around the world. In a show of solidarity, representatives of more than 25 foreign missions joined Canadians at Ottawa's embassy in Beijing last month as Spavor’s court decision came out.

Kovrig, a Canadian diplomat on leave, has a direct connection to powerful figures close to Biden.

Before his appointment, the president’s national security adviser, Jake Sullivan, was on the board of the International Crisis Group, which employed Kovrig. And Robert Malley headed the ICG before becoming Biden’s special envoy for Iran; he has campaigned publicly for Kovrig's release.

The Globe and Mail reported Friday that Meng's plea agreement does not include a deal to free the two Michaels. It remains to be seen if Canada has its own understanding with China that could lead to their eventual release.

A few weeks after their arrests, a Chinese court toughened its sentence for another Canadian, Robert Schellenberg. The court changed his initial sentence of 15 years for drug trafficking to a death sentence.

Canada has been demanding clemency for Schellenberg.

The Canadians’ cases have damaged Ottawa’s diplomatic relations with Beijing — and have long been Trudeau's top foreign policy challenge.

The courtroom development Friday came a few days after Trudeau won re-election.

Since Meng’s arrest, Trudeau has pledged to honor Canada’s extradition treaty with the U.S. and spoken about the importance of adhering to the rule of law and respecting the independent judiciary.

The prime minister has come under domestic pressure from prominent Canadians to free Meng as a way to spring Kovrig and Spavor from detention in China. He firmly rejected the calls, arguing it would put other Canadians at risk.

Trudeau has avoided open confrontation with Beijing in a delicate effort to free Spavor and Kovrig. In dealing with China, Trudeau has had to consider how much trade-dependent Canada relies on China, its second-biggest partner, to buy products ranging from iron ore to canola to lobster.

Leah Nylen and Phelim Kine contributed to this report.