E Meng's Arrest Vs. The Rule Of Law

Meng Wanzhou, CFO of the second best smartphone company in the world, is being held in a jail in Canada. She apparently will be charged with fraud, in  fooling banks in America to get them to fund technology transfers to Iran. 

We do not yet know if there are peripheral charges in addition to potential charges related to Iran. But if those charges are the meat of the matter, the big issue then, of course is, are we in violation of the treaty that governs transfers of technology to Iran. If we are in violation of the international framework, and apparently we are, our sanctions should have no significance, internationally, unless the rule of law means nothing.

More and more, the desperation of the United States is showing. Meng's company is Huawei. In the current ranking of smartphones for 2018 we see this:

 

1.SAMSUNG GALAXY NOTE 9

2.HUAWEI MATE 20 PRO

3.GOOGLE PIXEL 3 XL AND PIXEL 3

4.APPLE IPHONE XS MAX/XS

5.ONEPLUS 6T

6.HUAWEI P20 PRO

7.APPLE IPHONE XR

8.LG V40 THINQ

9.SONY XPERIA XZ3

10.SAMSUNG GALAXY S9/S9 PLUS

 

The company is discouraged from doing business in the USA. And it is being discouraged, supposedly because of espionage, but I believe it is because the company is just superior. It creates better products. Two of the 10 best smartphones in the world are Huawei's phones!

And it has 5 G superiority, and a head start, with a phone due out in 2019. I think the US is simply afraid of superior technology, the Rule of Law be damned. The phone likely will not be sold in the USA. And why not? Well, because clearly the US views 5G race as being necessary to win. But we are not up and running. When the Russians beat us to space with Sputnik, we didn't try to blow up all of Russia's rockets. We competed. Is the will to compete gone? Must we resort to underhanded behavior?

Most of us who were allowed to study history know about the murder of the Austrian Archduke:

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Disclosure: I have no financial interest in any companies or industries mentioned. I am not an investment counselor nor am I an attorney so my views are not to be considered investment ...

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Gary Anderson 9 months ago Author's comment

Update 12: Meng has produced documents showing that HSBC knew for years that Huawei had a relationship with Iran. The documents show the relationship existed since at least 2010. Yet Meng's presentation to HSBC took place in 2013! Again, the assumption of this article is that Huawei just is a better company than American or western competition.

Duke Peters 7 months ago Member's comment

It seems you are dismissing the possibility that Huawei is spying on Americans out of hand, and that this is just an excuse to stifle competition. But there are plenty of other competing companies like Samsung that aren't being accused. Isn't it possible Huawei is guilty?

Gary Anderson 7 months ago Author's comment

It is possible, but the US government has provided no proof and some agencies have denied there is spying. The world does not believe the USA which looks more and more like a fraudster government.

Gary Anderson 1 year ago Author's comment

Update 11: The world is not out of the woods, because of Meng. But Trump never really saw Huawei as a big security concern. That is a good thing, as it allows US companies to continue to sell to the cell phone and 5G innovator. The tariff truce is based on pragmatic necessity and could save our relationship with the largest middle class in the world, the Chinese middle class. Trump is eating humble pie for the good of American prosperity. I didn't think he had it in him to do so.

Gary Anderson 1 year ago Author's comment

Update 10: The US refuses to include Meng in the trade negotiations. Meanwhile, Canada is losing business to China. Canada has tried to get the US to bend on Meng with no success. Now Trump wants to impose more tariffs on China and Wall Street is getting nervous that we are losing the trade war. China produces 10 trillion dollars of goods while we produce 2 trillion. And our stock market is tied to China's success.

Murray LeClaire 1 year ago Member's comment

Unbelievable!

Gary Anderson 1 year ago Author's comment

Update 9: New data shows Huawei is the only smartphone with sales growth in China:

www.cnn.com/.../index.html

Bruce Powers 1 year ago Member's comment

Yes, I just saw that today too.

Gary Anderson 1 year ago Author's comment

Update 8: Even into 2019, reports show Apple iPhones still declining in China as the Chinese rally around Huawei.

Gary Anderson 1 year ago Author's comment

Update 7: Germany is trying to pull out of Huawei's 5G network and Canada is wavering. There is no doubt that China will retaliate. Germany had expressed no reservations in the article above. But with Trump indicating a return to tariff wars with Europe, it appears that the west could be cowering in the face of Trump pressure. The way these nations have treated China could be an indication of a very unhealthy world POTUS is creating.

Gary Anderson 1 year ago Author's comment

Update 6: Merrill Lynch reports Chinese citizens are boycotting iPhones. Chinese boycotts are effective and harsh and Apple is the prime example. Soon, iPhones will be a forgotten product in China. Are we winning? Also, Canada would do well to pay attention and let Meng go.

Gary Anderson 1 year ago Author's comment

Update 5: #iPhones are inferior to #Samsung and #Huawei. Poor cameras, can't handle heat. The list of best phones is in the article. And iPhones are overpriced. The cult of #Apple, the cult of #Tesla, the cult of #Trump may all be failing. The cult of America is a cult of power. Prosperity is more important than power. China appears to want prosperity more than power. Power without prosperity is doomed to failure.

Mike Nolan 1 year ago Member's comment

Any updates on this? What ended up happening with #Meng?

Gary Anderson 1 year ago Author's comment

Update 4: China may pass a law making illegal the practice of technology transfer in exchange for doing business in china. It is not expected to change local government transfer demands. It probably won't be obeyed. And these transfers are legal internationally. Perhaps China is willing to compromise, knowing that it can get any technology it wants from Japan and Israel. Most Americans would be surprised to know that this is already happening: www.talkmarkets.com/.../are-policy-refugees-jumping-the-trump-tariff-ship

Mike Nolan 1 year ago Member's comment

Thanks for these updates. I still had this article up on my computer but hadn't refreshed it. Just did and saw all your updates come in.