Huawei’s research at McMaster

Tensions between Canada, China and the U.S. continue to rise as a senior executive with Chinese telecom giant Huawei remains in custody over fraud charges in Vancouver.

The investigation has lead to Ottawa second guessing its relationship with the company and universities being told to be cautious over Huawei-funded research.

Meng Wanzhou, the chief financial officer attended a bail hearing in Vancouver on Monday. The 46-year old was arrested December 1st at the Vancouver airport over fraud allegations made by the U.S. Government.

A U.S. federal prosecutor alleged that Huawei disobeyed U.S. sanctions by using its subsidiary Skycom to do business with Iranian telecomm companies between 2009 and 2014.

The Chinese foreign ministry has threatened that Canada could face ‘grave consequences’ if Meng wasn’t released. The threats led to a cancellation of the B.C. government’s trade mission to China over the weekend.

Huawei is the world’s largest telecom equipment manufacturer and second-largest cellphone manufacturer behind Samsung and ahead of Apple. However, the investigation could have an impact on the Chinese company’s role in developing Canada’s enhanced 5g internet infrastructure which would bolster connections and increase data capacity.

The country’s infrastructure minister says this is a matter of national security,

“This is not about politics, this is about advice which would inform decision by government, this is serious matters.” Francois-Philippe Champagne.

The fear is that Huawei, which was founded by Meng’s father 74-year old Ren Zhengfei, a former military engineer, could secretly install spy software into the very equipment Canada purchases.

Countries like India, Australia and New Zealand have already excluded Huawei from installing their own 5g networks.

Canada’s top spy agency is telling Canadian universities to be cautious when taking research money from Huawei. McMaster University told CHCH that Huawei signed a cheque for $125 000 for digital imaging research and another $90 000 involving large scale instructive data analysis. McMaster added that it’s unaware of any patents that resulted in the research.

Meng’s lawyer says a private security company would be responsible for keeping an eye on her if granted bail and would arrest her if she attempted to breach her bail conditions.