Huawei Chief Financial Officer Meng Wanzhou flew home to China on Friday after reaching an agreement with US prosecutors to end the bank fraud case against her, relieving a point of tension between China and the United States.
Within hours of the news of the deal, two Canadians who were arrested shortly after Meng was taken into custody in December 2018 were released from Chinese jails and were on their way back to Canada. Beijing had denied that their arrests were linked.
The years-long extradition drama has been a central source of discord in increasingly rocky ties between Beijing and Washington, with Chinese officials signaling that the case needed to be dropped to help end a diplomatic stalemate between the world’s top two powers.
The deal also opens US President Joe Biden up to criticism from China hawks in Washington who argue his administration is capitulating to China and one of its top companies at the center of a global technology rivalry between the two countries.
Meng was arrested at Vancouver International Airport on a US warrant, and indicted on bank and wire fraud charges for allegedly misleading HSBC in 2013 about the telecommunications equipment giant’s business dealings in Iran.
In an exclusive on Friday, Reuters reported that the United States had reached a deferred prosecution agreement with Meng. Nicole Boeckmann, the acting US Attorney in Brooklyn, said that in entering into the agreement, “Meng has taken responsibility for her principal role in perpetrating a scheme to defraud a global financial institution.”
The agreement pertains only to Meng, and the US Justice Department said it is preparing for trial against Huawei and looks forward to proving its case in court.
A spokeswoman for Huawei declined to comment.
A person familiar with the matter said Meng — the daughter of Huawei founder, Ren Zhengfei — had left Canada on a flight to Shenzhen.
The two Canadians, businessman Michael Spavor and former diplomat Michael Kovrig, had been held in China for more than 1,000 days. In August, a Chinese court sentenced Spavor to 11 years in prison for espionage.
Prime Minister Justin Trudeau told reporters in brief remarks late on Friday the two men had left Chinese airspace just minutes before. He was not asked whether the two countries had struck a bilateral deal.
“I want to thank our allies and partners around the world in the international community who have stood steadfast in solidarity with Canada and with these two Canadians,” he said.
At a hearing in Brooklyn federal court on Friday, which Meng attended virtually from Canada, Assistant US Attorney David Kessler said the government would move to dismiss the charges against her if she complies with all of her obligations under the agreement, which ends in December 2022. He added that Meng will be released on a personal recognizance bond, and that the United States plans to withdraw its request to Canada for her extradition.
Meng pleaded not guilty to the charges in the hearing. When US District Court Judge Ann Donnelly later accepted the deferred prosecution agreement, Meng sighed audibly.
A Canadian judge later signed Meng’s order of discharge, vacating her bail conditions and allowing her to go free after nearly three years of house arrest.
She was emotional after the judge’s order, hugging and thanking her lawyers.
Speaking to supporters and reporters on the steps of the court afterward, Meng thanked the judge for her “fairness” and talked of how the case had turned her life “upside down.”
Meng was confined to her expensive Vancouver home at night and monitored 24/7 by private security that she paid for as part of her bail agreement. Referred to by Chinese state media as the “Princess of Huawei,” she was required to wear an electronic ankle bracelet to monitor her movements, which became fodder for the tabloids when it hung above her designer shoes.
Articles published by Reuters in 2012 and 2013 about Huawei, Hong Kong-registered company Skycom and Meng figured prominently in the US criminal case against her. Reuters reported that Skycom had offered to sell at least 1.3 million euros worth of embargoed Hewlett-Packard computer equipment to Iran’s largest mobile-phone operator in 2010.
Reuters also reported numerous financial and personnel links between Huawei and Skycom, including that Meng had served on Skycom’s board of directors between February 2008 and April 2009. The stories prompted HSBC to question Meng about Reuters findings.
Huawei was placed on a US trade blacklist in 2019 that restricts sales to the company for activities contrary to US national security and foreign policy interests. The restrictions have hobbled the company, which suffered its biggest revenue drop in the first half of 2021, after the US supply restrictions drove it to sell a chunk of its once-dominant handset business before new growth areas have matured.
The criminal case against Meng and Huawei is cited in the blacklisting. Huawei is charged with operating as a criminal enterprise, stealing trade secrets and defrauding financial institutions. It has pleaded not guilty.
A Canadian government official said Ottawa would not comment until the US court proceedings were over.
Huawei has become a dirty word in Washington, with China hawks in Congress quick to react to any news that could be construed as the United States being soft, despite Huawei’s struggles under the trade restrictions.
Then-President Donald Trump politicized the case when he told Reuters soon after Meng’s arrest that he would intervene if it would serve national security or help secure a trade deal. Meng’s lawyers have said she was a pawn in the political battle between the two super powers.
Republican China hard-liners in Congress called Friday’s deal a “capitulation.”
“Instead of standing firm against China’s hostage-taking and blackmail, President Biden folded,” Republican Senator Tom Cotton said in a statement.
Senior US officials have said that Meng’s case was being handled solely by the Justice Department and the case had no bearing on the US approach to strained ties with China.
During US Deputy Secretary of State Wendy Sherman’s July trip to China, Chinese Vice Foreign Minister Xie Feng insisted that the United States drop its extradition case against Meng.
US officials have acknowledged that Beijing had linked Meng’s case to the case of the two detained Canadians, but insisted that Washington would not be drawn into viewing them as bargaining chips.
Huawei CFO leaves Canada after agreement with US over fraud charges, detained Canadians head home
https://arab.news/mk7ga
Huawei CFO leaves Canada after agreement with US over fraud charges, detained Canadians head home
- Meng Wanzhou indicted on bank and wire fraud charges for allegedly misleading HSBC in 2013 about the telecommunications equipment giant’s business dealings in Iran.
Sarkozy’s son signs up for French far-right magazine
- Louis Sarkozy, born to Sarkozy’s second wife Cecilia Attias, spent most of his childhood in the United States but has appeared on French television recently as a commentator on American politics
- Valeurs Actuelles, which is hoping to shed its association with the far-right, backed virulently anti-Islam politician Eric Zemmour in France’s 2022 presidential election and regularly focuses on immigration and crime
PARIS: The third son of former French president Nicolas Sarkozy has been unveiled as a surprise columnist for far-right news magazine Valeurs Actuelles, reinforcing speculation about his possible political ambitions.
The first contribution from Louis Sarkozy, 27, is set to appear in a relaunched edition of the magazine on Wednesday and will be devoted to “the values of the right.”
“He’s ebullient, cultured, creative: it’s the perfect combination for a column at the end of the magazine,” director Tugdual Denis told AFP.
Valeurs Actuelles, which is hoping to shed its association with the far-right, backed virulently anti-Islam politician Eric Zemmour in France’s 2022 presidential election and regularly focuses on immigration and crime.
Louis Sarkozy, born to Sarkozy’s second wife Cecilia Attias, spent most of his childhood in the United States but has appeared on French television recently as a commentator on American politics.
He raised eyebrows with a speech last month at a meeting in Paris of the youth wing of his father’s Republicans party — and was invited to Donald Trump’s inauguration as US president in Washington last week.
Nicolas Sarkozy, who is now married to former supermodel Carla Bruni, remains mired in legal problems since his single 2007-2012 term in office.
Already convicted in two cases, he is currently on trial over allegations he and his entourage conspired with late Libyan dictator Muammar Qaddafi to receive millions of euros in illegal campaign financing.
Sarkozy’s eldest son Pierre has become a DJ and hip hop producer, while his second son Jean briefly entered politics before becoming embroiled in a favoritism scandal.
Asked about Louis’s growing presence in the media, Sarkozy told the CNews channel last month that he was “proud of him and his courage.”
Ukraine drone attacks target Russian power, oil facilities, officials and media say
Debris from a destroyed drone sparked a fire at an industrial facility in Kstovo, in Nizhny Novgorod, governor of the region that lies east of Moscow said on the Telegram messaging app.
“According to preliminary data, there are no casualties,” Gleb Nikitin, the governor, said.
He did not disclose further detail. Baza, a Russian Telegram news channel, which is close to Russia’s security services, reported that an oil refinery in Kstovo was on fire.
In the western Russia region of Smolensk, which borders Belarus, air defense systems destroyed a drone attempting to attack a nuclear power facility, Governor Vasily Anokhin said. He added that parts of the region were under a “massive” drone attack.
“According to preliminary information, one of the drones was shot down during an attempt to attack a nuclear power facility,” Anokhin said on the Telegram messaging app. “There were no casualties or damage.”
Another 26 drones were downed over the Bryansk region that borders Ukraine, and 20 drones over the Tver region that borders the Moscow region to its south, regional governors said. There were no damage or casualties, they said.
Russian aviation watchdog Rosaviatsia said on Telegram that in order to ensure safety it was halting all flights at the Kazan airport. Kazan, the capital of the Republic of Tatarstan, lies some 830 km (516 miles) east of Moscow.
The full scale of attacks was not immediately known. Reuters could not independently verify the reports and there was no comment from Ukraine.
Both sides deny targeting civilians in their attacks in
the war
that Russia started with a full-scale invasion in February 2022. Kyiv says that its attacks inside Russia aim to destroy infrastructure key to Moscow’s war efforts.
OpenAI tailors version of ChatGPT for US government
- The new ChatGPT Gov version of OpenAI’s popular chatbot provides a tailored AI tool to assist the work of US government agencies and their employees
SAN FRANCISCO: OpenAI on Tuesday launched a bespoke version of its ChatGPT artificial intelligence tool for use by the United States government.
Big money government contracts are often tech firm targets, and OpenAI already boasts some 90,000 users of ChatGPT across federal, state and local governments in the United States.
The new ChatGPT Gov version of OpenAI’s popular chatbot provides a tailored AI tool to assist the work of US government agencies and their employees.
“By making our products available to the US government, we aim to ensure AI serves the national interest and the public good, aligned with democratic values, while empowering policymakers to responsibly integrate these capabilities to deliver better services to the American people,” OpenAI said in an online post.
The cost of ChatGPT Gov, if any, was not disclosed.
ChatGPT Gov builds on an enterprise version of the chatbot designed for use by businesses and can run on Microsoft’s cloud computing platform, according to OpenAI.
“Self-hosting ChatGPT Gov enables agencies to more easily manage their own security, privacy, and compliance requirements,” OpenAI said.
The company believes the new offering will speed up authorization for OpenAI tools to be used to handle sensitive non-public data in government agencies, according to the post.
In his first full day in the White House, US President Donald Trump announced a major investment to build infrastructure for artificial intelligence led by Japanese giant SoftBank and OpenAI.
Trump said the venture, called Stargate, “will invest $500 billion, at least, in AI infrastructure in the United States.”
Trump’s funding freeze triggers worry, Democrats say it hits Medicaid program
- Order sows confusion among US agencies
- Foreign aid also frozen, lifesaving medicines withheld
WASHINGTON: President Donald Trump’s order to pause all federal grants and loans sowed widespread confusion on Tuesday over its impact on far-reaching programs such as Medicaid, sending nonprofits and government agencies scrambling to understand its scope and prompting immediate legal challenges. The sweeping directive was the latest step in Trump’s dramatic effort to overhaul the federal government, which has already seen the new president halt foreign aid, impose a hiring freeze and shutter diversity programs across dozens of agencies. Democrats castigated the funding freeze as an illegal assault on Congress’ authority over federal spending, while Republicans largely defended the order as a fulfillment of Trump’s campaign promise to rein in a bloated budget.
Despite assurances from the Trump administration that programs delivering critical benefits to Americans would not be affected, US Senator Ron Wyden, the top finance committee Democrat, said his office had confirmed that the portal doctors use to secure payments from Medicaid had been deactivated in all 50 states.
Medicaid, which covers about 70 million people, is jointly funded by both the states and the federal government, and each state runs its own program.
White House press secretary Karoline Leavitt could not say whether the program had been frozen, telling reporters at her first briefing since Trump took office on Jan. 20, “I’ll get back to you.”
Leavitt later posted on X that the federal government was aware of the Medicaid portal outage and that no payments had been affected. The website will be back online “shortly,” she said. The order, laid out in a memo from the Office of Management and Budget, which oversees the federal budget, will freeze federal grants and loans as of 5 p.m. Tuesday (2200 GMT) while the administration ensures they are aligned with the Republican president’s priorities, including executive orders he signed ending diversity, equity and inclusion efforts.
Federal grants and loans reach into virtually every corner of Americans’ lives, with trillions of dollars flowing into education, health care and anti-poverty programs, housing assistance, disaster relief, infrastructure and a host of other initiatives.
The memo said Tuesday’s freeze included any money intended “for foreign aid” and for “nongovernmental organizations,” among other categories.
The White House said the pause would not impact Social Security or Medicare payments to the elderly or “assistance provided directly to individuals,” such as some food aid and welfare programs for the poor.
In a second memo released on Tuesday, OMB officials said funds for Medicaid, Head Start, farmers, small businesses and rental assistance would continue without interruption. The freeze followed the Republican president’s suspension of foreign aid last week, a move that began cutting off the supply of lifesaving medicines on Tuesday to countries around the world that depend on US development assistance.
Disputed effects
Four groups representing nonprofits, public health professionals and small businesses filed a lawsuit on Tuesday challenging the directive, saying it “will have a devastating impact on hundreds of thousands of grant recipients.” Democratic state attorneys general also said they would ask a court on Tuesday to block the freeze from taking effect.
“From pausing research on cures for childhood cancer to halting food assistance, safety from domestic violence, and closing suicide hotlines, the impact of even a short pause in funding could be devastating and cost lives,” Diane Yentel, president and CEO of the National Council of Nonprofits, one of the four groups that sued on Tuesday, said in a statement.
In Connecticut, the reimbursement system for Head Start — a government program that provides early education and other benefits to low-income families — was shut down, preventing preschools from paying staff, Democratic US Senator Chris Murphy said on X. The OMB memo did not appear to exempt disaster aid to areas like Los Angeles and western North Carolina that have been devastated by natural disasters. Trump pledged government support when he visited both places last week.
At the Tuesday briefing, Leavitt would not specifically say whether Head Start or disaster aid would be frozen.
Agencies were trying to understand how to implement the new order.
The Justice Department’s Office of Justice Programs, its largest grant-making arm, will pause $4 billion in funding for community-based programs, nonprofits, states and municipalities, according to a person familiar with the matter and a memo seen by Reuters. Among the affected programs include the National Center for Missing and Exploited Children, which receives more than $30 million a year from the Justice Department.
The OMB memo asserted the federal government spent nearly $10 trillion in fiscal year 2024, with more than $3 trillion devoted to financial assistance such as grants and loans. But those figures appeared to include money authorized by Congress but not actually spent — the nonpartisan Congressional Budget Office estimated government spending in 2024 at a much lower $6.75 trillion.
Trump’s Republican allies have been pushing for dramatic spending cuts, though he has promised to spare Social Security and Medicare, which make up roughly one-third of the budget. Another 11 percent of the budget goes toward government interest payments, which cannot be touched without triggering a default that would rock the world economy.
Democrats challenge ‘lawless’ move
Democrats immediately criticized the spending freeze as unlawful and dangerous.
Senate Democratic Leader Chuck Schumer said the administration did not have the authority to prevent spending approved by Congress.
“This decision is lawless, destructive, cruel,” Schumer said in a speech to the Senate. “It’s American families that are going to suffer most.”
The US Constitution gives Congress control over spending matters, but Trump said during his campaign that he believes the president has the power to withhold money for programs he dislikes. His nominee for White House budget director, Russell Vought, who has not yet been confirmed by the Senate, headed a think tank that has argued Congress cannot require a president to spend money.
US Representative Tom Emmer, the No. 3 Republican in the House of Representatives, said Trump was simply following through on his campaign promises.
“You need to understand he was elected to shake up the status quo. That is what he’s going to do. It’s not going to be business as usual,” Emmer told reporters at a Republican policy retreat in Miami.
At least one Republican centrist, US Representative Don Bacon, said he hoped the order would be short-lived after hearing from worried constituents, including a woman who runs an after-school program that depends on federal grant money.
“We’ve already appropriated this money,” he said. “We don’t live in an autocracy. It’s divided government. We’ve got separation of powers.”
Pentagon to pull Milley’s security clearance, Fox News reports
- Milley was among the preemptive pardons that former President Joe Biden issued on Jan. 20, his last day in office
WASHINGTON: US Defense Secretary Pete Hegseth will announce he is revoking the security clearance and personal security detail for retired Army General and former chairman of the Joint Chiefs of Staff Mark Milley, Fox News reported on Tuesday cited multiple senior administration officials.
Hegseth will also direct a review to consider if Milley should be stripped of a star in retirement based on actions that “undermine the chain of command,” Fox News reported on Tuesday.
The last portrait of Milley will also be removed from the Pentagon, Fox News reported. Milley was among the preemptive pardons that former President Joe Biden issued on Jan. 20, his last day in office.