Huawei CFO Back in Canada Court in Extradition Case as US Negotiates Resolving Charges

Huawei Technologies Chief Financial Officer Meng Wanzhou arrives at court in Vancouver | Photo: REUTERS
Huawei Technologies Chief Financial Officer Meng Wanzhou arrives at court in Vancouver | Photo: REUTERS
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Huawei CFO Back in Canada Court in Extradition Case as US Negotiates Resolving Charges

Huawei Technologies Chief Financial Officer Meng Wanzhou arrives at court in Vancouver | Photo: REUTERS
Huawei Technologies Chief Financial Officer Meng Wanzhou arrives at court in Vancouver | Photo: REUTERS

Huawei Chief Financial Officer Meng Wanzhou will return to a Canadian court on Monday as witness testimony in her US extradition case resumes, amid news last week that her lawyers and US prosecutors held talks to reach a deal that could see her release and to return to China after two years of house arrest.

Meng, 48, was arrested in Canada in December 2018 on a warrant from the United States. She is facing charges of bank fraud for allegedly misleading HSBC Holdings Plc about Huawei Technologies Co Ltd’s business dealings in Iran, causing the bank to break US sanctions.

She has said she is innocent and is fighting the extradition from under house arrest in Vancouver.

US prosecutors are discussing a deal with lawyers for Huawei’s Meng to resolve criminal charges against her, a person familiar with the matter said on Thursday, signaling a potential end to a case that has strained ties between the United States, China, and Canada.

Her lawyers have argued in the British Columbia Supreme Court that Meng’s extradition should be thrown out based on alleged abuses of process that took place during her investigation by Canadian border officials and subsequent arrest by police.

They have also claimed the case has been politicized to the point where Meng would not receive a fair trial in the United States, pointing to comments made by President Donald Trump in an interview with Reuters in December 2018 about his willingness to use Meng as a bargaining chip in trade talks with China.

In previous weeks of witnesses’ cross examinations, officials from the Canada Border Services Agency (CBSA) and the Royal Canadian Mounted Police (RCMP) testified in the court that the process leading up to Meng’s investigation and arrest was rushed but by the book.

Prosecutors are arguing that Meng’s extradition is valid and procedures were followed.

Meng’s arrest caused a chill in diplomatic relations between Ottawa and Beijing. Shortly after Meng was detained, China arrested two Canadian men - Michael Kovrig and Michael Spavor - who now face spying charges.

On Friday, Canadian Prime Minister Justin Trudeau said the release of the two Canadians was his “top priority”, while declining to comment on the talks to release Meng.

Meng’s case is scheduled to wrap up in April 2021.



Intel Shares Fall as Dour Forecasts Overshadow CEO’s Turnaround Promises

The Intel logo is seen near computer motherboard in this illustration taken January 8, 2024. (Reuters)
The Intel logo is seen near computer motherboard in this illustration taken January 8, 2024. (Reuters)
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Intel Shares Fall as Dour Forecasts Overshadow CEO’s Turnaround Promises

The Intel logo is seen near computer motherboard in this illustration taken January 8, 2024. (Reuters)
The Intel logo is seen near computer motherboard in this illustration taken January 8, 2024. (Reuters)

Intel's shares fell more than 8% on Friday as the company's weak revenue and profit forecasts overshadowed new CEO Lip-Bu Tan's strategy to revitalize the embattled chipmaker.

Years of bad decisions have left the struggling American chipmaking icon trailing in the lucrative artificial intelligence industry, while a raging Sino-US trade war casts doubt on near-term demand for its PC processors.

Tan on Thursday gave glimpses of his plans to reanimate Intel's culture of innovation by focusing on core engineering, stripping away unnecessary administrative work and cutting workforce.

"Intel is so huge that shifting its course is like turning a battleship – it cannot be done on a dime," Evercore ISI analysts said.

Tan did not provide much detail on how he will restore Intel's leadership position in manufacturing, nor on his plans to attract more external customers to the company's foundry, J.P.Morgan analysts said.

Tan remains focused on the contract manufacturing business and has recently met rival TSMC'S CEO to discuss how the two companies could collaborate.

Executives said first-quarter sales were boosted by customers stockpiling chips as growing tariff tensions between the US and China have made buyers wary of future purchases.

Intel could also stand to benefit if China introduces certain exemptions on US imports given the company's large presence in the Asian country, Ben Barringer, global technology analyst at Quilter Cheviot, said.

AI STRATEGY IN QUESTION

Tan's comments about sharpening Intel's existing products to best suit emerging AI trends have sparked questions on how the company plans to get ahead in the booming artificial intelligence sector and challenge market leader Nvidia.

"Intel needs to streamline fast – they have a lot of investments to make to catch up in AI," Stifel analyst Ruben Roy said.

Historically, Intel has relied on buying startups to further its AI ambitions. Other than Mobileye which Intel spun out a few years ago, the other deals didn't help the company gain much traction.

"Intel should have always had its own internal solution, but it missed the boat and tried to acquire its way into AI," Anshel Sag, principal analyst at Moor Insights & Strategy, said.

One of Intel's biggest missteps was failing to capitalize on the booming demand for AI chips, allowing Nvidia to dominate the market.

Intel now faces an uphill battle in challenging AI heavyweights as it lacks the same level of GPU intellectual property, which is essential for AI workloads, Barringer added.

The company's stock has gained 7.2% so far this year, outperforming Nvidia and Advanced Micro Devices, which have fallen nearly 20% each.

Intel, however, trades at a higher 12-month forward price-to-earnings ratio of 31.37 versus 22.70 for Nvidia and 19.24 for AMD.