Braces for consequences

Canada braces for consequences from China after Huawei exec loses bid to dismiss extradition to U.S.

A British Columbia judge on Wednesday dismissed Meng Wanzhou’s request to be discharged from the extradition process.

By ANDY BLATCHFORD

A Canadian judge ruled Wednesday that the high-stakes extradition case of senior Huawei executive Meng Wanzhou will proceed, a decision poised to inflame Canada’s already testy relationship with China.

Canada-China ties plunged to a new low after Meng’s December 2018 arrest in Vancouver on an extradition warrant from the United States on fraud charges connected to violating sanctions on Iran.

A British Columbia judge dismissed Meng’s request to be discharged from the extradition process after ruling the case against her satisfies the “double criminality” test, which states countries may only extradite someone on an allegation that is a criminal offense in their own jurisdiction.

Meng’s legal team had argued the alleged conduct could not have amounted to fraud in Canada because it's related to U.S. economic sanctions against Iran, which the Canadian government has not imposed.

But B.C. Supreme Court Associate Chief Justice Heather Holmes said Canada’s laws determine whether the alleged conduct, in its “essence,” amounts to fraud and said she could therefore not agree with Meng’s argument.

“I conclude that, as a matter of law, the double criminality requirement for extradition is capable of being met in this case,” Holmes said in her ruling. “Ms. Meng’s application is therefore dismissed.”

Meng is expected to continue fighting extradition, and experts say the process could take years.

Her case has wedged Canada into an uncomfortable spot between two feuding superpowers — China and the United States.

The arrest of the Chinese tech giant’s chief financial officer, who is also the daughter of the company’s founder, has enraged Beijing.

The Chinese Embassy in Ottawa tweeted a statement late Wednesday to express its "strong dissatisfaction and firm opposition" to the court's decision, calling the Meng case "a grave political incident."

"The United States and Canada, by abusing their bilateral extradition treaty and arbitrarily taking forceful measures against Ms. Meng Wanzhou, gravely violated the lawful rights and interests of the said Chinese citizen," the embassy said. "The purpose of the United States is to bring down Huawei and other Chinese high-tech companies, and Canada has been acting in the process as an accomplice."

The embassy called on Canada to immediately release Meng and warned it "not to go further down the wrong path."

The dispute with China has already led to negative consequences for Canada.

Days after Meng's arrest, Chinese authorities rounded up Canadians Michael Kovrig, a diplomat on leave, and businessman Michael Spavor on allegations of endangering China’s national security. Both men are being held behind bars in China with limited access to consular services and almost no contact with their families.

Prime Minister Justin Trudeau has called their detentions arbitrary and has pushed for their release. He’s also sought help from the international community — including from the Trump administration — to put pressure on China.

Since Meng’s arrest, Trudeau has repeatedly insisted Canada’s justice system will deal with her case fairly and transparently. He has said the Canadians’ detentions are in “retaliation” for Canada’s independent judicial system.

“One of the good things about having a truly independent justice system is that we don’t need to apologize or explain for the decisions taken by our independent justice system,” Trudeau told reporters Tuesday.

“We have confidence in that system, in its independence, and we of course will continue to abide and defend our system.”

The Trudeau government has also been working to get clemency for a third Canadian, Robert Lloyd Schellenberg, who is facing the death penalty in China for drug smuggling. Schellenberg's initial 15-month sentence was reconsidered last year by a Chinese court after Meng's arrest.

A spokesperson for China’s foreign ministry told reporters Tuesday that Chinese authorities are ensuring the legal rights of Kovrig and Spavor.

“China urges the Canadian side to respect the rule of law and China's judicial sovereignty and stop making irresponsible remarks,” Zhao Lijian said in an apparent reference to Trudeau’s criticisms.

Shortly after Meng’s arrest, President Donald Trump complicated matters by speculating in an interview with Reuters about interfering in Meng's case if it would help him strike a trade deal with China.

The Chinese government’s response to Meng’s arrest has also delivered an economic blow for Canada. China halted its imports of key Canadian agricultural products, including canola seed.

The backdrop to the Meng case also directly involves her company, Huawei.

The Trudeau government still has yet to make its long-awaited decision whether to bar or limit the use of Huawei gear in its 5G wireless infrastructure. Canada is the sole member of the Five Eyes intelligence alliance that has yet to announce its position — and it has come under pressure from the Trump administration to block Huawei from 5G.

Days after Meng’s arrest, China’s then-ambassador to Ottawa warned of “repercussions” if Canada were to exclude Huawei gear from its 5G network.