Huawei CFO Wanzhou Meng, the daughter of Ren Zhengfei, has lost her first legal battle in Canada and will now have to face an extradition case.

This story had been lost in the throng of news over the last few months, but it will almost certainly start to attract international interest once again. Not only is this a landmark legal case to set precedent, it will act as fuel to be tossed on the embers of the burning US-China relationship.

“For the reasons I will give, I find that the allegations depend on the effects of US sanctions,” a ruling from Honourable Associate Chief Justice Heather Holmes of the Supreme Court of British Columbia stated. “However, I conclude that those effects may play a part in the determination of whether double criminality is established.

“For that reason, Ms Meng’s application will be dismissed.”

Although this is a loss for Meng and Huawei, this is only the first stage. The next court case will be to decide whether Meng can be extradited to the US.

Once arrested and the prospect of extradition to the US to face sanction violation charges emerged on the horizon, Meng’s legal team filed objections to the process on the grounds of ‘Double Criminality’. This is a rule in extradition cases which states that an individual can only be extradited if the law in questions exists in both countries.

The team claimed that as Meng allegedly broke US sanctions against Iran, not Canadian sanctions, Double Criminality could not be satisfied. However, the Supreme Court has confirmed there are relevant laws in Canada, therefore Meng is eligible for extradition.

“Huawei is disappointed in the ruling by the Supreme Court of British Columbia, we have repeatedly expressed confidence in Ms Meng’s innocence,” a Huawei statement reads. “Huawei continues to stand with Ms Meng in her pursuit for justice and freedom.

“We expect the Canadian judicial system will ultimately prove Ms Meng’s innocence. Ms Meng’s lawyers will continue to work tirelessly to see justice is served.”

Meng was originally arrested in December 2018 while in Vancouver airport on layover to China. Canada made the arrest at the request of the US, with the US claiming Meng knowingly violated an embargo against Iran and misled US banks in 2013 by not making connections to Hong Kong firm Skycom, which works with Iranian parties, known.

While this is another sign of US aggression towards Huawei, the Chinese Government is bound to get involved sooner rather than later in protection of one of its domestic champions. Tensions between the two global superpowers could once again be ratcheted up a level, and it would be no surprise to see additional tariffs or corporate exclusions introduced as a result.

The political conflict will continue in the background, but for Huawei CFO Wanzhou Meng, attention will turn to the extradition case. Cynics will suggest that as soon as Meng crosses the border to the US it is game over, so enough money will have to be thrown at the Canadian extradition case if Meng is to return to China in the foreseeable future, if ever.

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