Chinese telecoms giant huawei has taken a new legal action to prevent the extradition of its chief financial officer Meng Wanzhou from Canada to the United States. On Friday (Feb. 12), it took Britain’s HSBC to court, demanding it hand over relevant documents.
Huawei filed an application in the U.K. High Court for documents that it believes will show that its Meng did not mislead HSBC about evading Iran sanctions, as U.S. authorities have alleged.
The legal request further complicates the geopolitical battle surrounding Meng’s case. It also adds to the pressure on London-based HSBC, which derives most of its revenue from China.
In December 2018, Meng Wanzhou, daughter of Huawei founder Ren Zhengfei, was detained by Canadian authorities at the request of the U.S. during a transit flight in Vancouver. The U.S. government has accused Huawei of using a Hong Kong shell company called Starcom (Skycom) to sell telecom equipment to Iran. Meng Wanzhou is fighting a lawsuit to avoid extradition to the United States. She is accused in the United States of misleading HSBC about Huawei’s business in Iran and thus committing fraud.
Huawei’s lawsuit focuses on a PowerPoint presentation Meng made to an HSBC executive in Hong Kong in August 2013 that detailed Huawei’s relationship with Starcom and its efforts to comply with the regulations.
Meng’s legal team accused the U.S. of making a misleading summary of that meeting, carefully selecting only a few of the slides. They wanted the full PowerPoint presentation. They say Meng explained the relationship between Huawei and Starcom.
Huawei also wanted the transcripts to better understand who at HSBC knew about the meeting and what was discussed at it.
“In order for her to have a fair hearing in Canada, she needs these documents,” James Lewis, Huawei’s lawyer, said during the hearing. He said U.S. authorities had refused to provide the documents, but there was nothing to stop her defense team from using them “if she can get them independently of disclosure by U.S. prosecutors.”
HSBC’s lawyers told the judge that the request should be denied because the court had no jurisdiction over it.
“There is no basis for a disclosure request in the United Kingdom,” the bank said in a media statement. “HSBC is not a party to this criminal case in the United States or to the Canadian extradition proceedings.”
Judge Michael Fordham said he was aiming to issue a written judgment within seven days.
Meng’s arrest has worsened China’s relations with the United States and Canada. Apparently in retaliation, China detained former Canadian diplomat Michael Kovrig and Canadian businessman Michael Spavor.
Proceedings in Canada regarding Meng’s extradition will resume on March 1, a process that could take years to conclude. Meng was released on bail during her extradition hearing and is being held under house arrest at her mansion in Vancouver.
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