Democrat Criticizes Trump for Pledge to Intervene on Huawei Case

Huawei

The recent arrest of Huawei CFO, Meng Wanzhou, continues to be a major political talking point. Not only does the extradition case impact global politics; it could also influence ongoing trade negotiations.

In a recent interview with Reuters, President Trump said that he could become personally involved if it would help Chinese trade talks. His comments pleased investors but have concerned some in the U.S. and abroad.

Senator Says Intervention would be ‘Disturbing’

President Trump spoke to Reuters this week, saying that he would “certainly intervene” if he “thought it was necessary”. The President said that ongoing negotiations with China could lead to the largest trade deal in history, and that a new agreement would be good for national security.

The arrest of Meng Wanzhou was condemned by China, and although it hasn’t derailed trade negotiations so far, it is speculated that the U.S. could use Meng as a bargaining chip. The Huawei CFO is currently on bail in Canada, pending a court hearing for her extradition to the U.S.

During a Senate Judiciary Committee hearing this week, Democratic Senator Richard Blumenthal said that Trump’s position “Makes it look like law enforcement is a tool of either trade or diplomatic ends of this country. That may be true in other countries, but not in this one.”

Canadian Prime Minister Justin Trudeau was also concerned by Trump’s comments but reiterated that Canada will follow legal process for the extradition. He spoke this week, saying that “Regardless of what goes on in other countries, Canada is and will always remain a country of the rule of law.”

Justice Department Eases Huawei Concern

While some observers and Senators like Blumenthal might be concerned about the situation, the Justice Department has made statements to alleviate any worry. John Demers from the Justice Department National Security Division said that “What we do at the Justice Department is law enforcement. We follow the facts and vindicate violations of U.S. law.” Most importantly, Demers stated that “We are not a tool of trade when we bring these cases.”

Should the President have confirmed that he would intervene on a Justice Department extradition Huawei case? With the stakes as high as they are, many investors and even the average citizen would see any such action as a smart move for trade and international relations.

There will also be those who have an opposing viewpoint, seeing Meng’s extradition and prosecution for sanctions violations as strictly a legal case where the politics should be left to the side.

As it stands today, Meng has been released on $10 million bail and will reappear in court on February 6 to face extradition proceedings.

 

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The reports, research and newsletter are based on current and historical market data, as well as publicly available financial data.They are intended to be a starting point for investors. They do not provide every material fact about a company or industry, nor are they recommendations to buy or sell. The writers and the company make no warranties or representations as to the accuracy of these reports.   You should NOT rely solely upon the information or opinions read in the content. Rather, you should use the content as a starting point for doing independent research on the independent analysis and trading methods in the content. The content is impersonal and does not provide individualized advice or recommendations for any specific reader or individual portfolio. By accessing this website you have agreed to our disclaimers and privacy policy.

 

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