Tuesday, July 14, 2020

The case of Huawei: How that impacts Canada-China relations

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Nikhita Gautam

Article Title

The case of Huawei: How that impacts Canada-China relations

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Global Views 360

Publication Date

July 14, 2020

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Huawei office in Canada

Huawei office in Canada | Raysonho via Wikimedia

In December 2018, Meng Wanzhou, the Chief Financial Officer for Huawei, a China-based tech company which is dominating the telecom supplies, was arrested in Vancouver, Canada on her flight stop to Mexico. This was done on a request from the USA with whom Canada has an extradition treaty. She was sought by the USA for allegedly dealing with Iran using an American banking system in spite of the sanctions placed on Iran by the country, in 2013. In May, Wanzhou lost the legal challenge to the extradition process, meaning that they will go ahead with the extradition proceedings.

Within days of Wanzhou’s arrest, two Canadian citizens in China were arrested on alleged accounts of spying. This is seen as a retaliation for the Wangzhou arrest by the Canadian Prime Minister Justin Trudeau, who says that there is a direct link between Wanzhou’s arrest and those of Michael Spavor and Michael Kovrig,  the Canadians who are detained in China. Though China has been tight-lipped about the link between the two, these two incidents are often raised jointly by the Chinese spokesperson. David Mulroney, former ambassador for Canada to China, has said that the officials in Beijing are mirroring the ongoing extradition case to that of the detained Canadians.

Although Mr. Trudeau has in the past repeatedly emphasized the need for good relations with China, and has enthusiastically worked on them to the point of agreeing to discuss a Canada-China extradition treaty. But the China-Canada relations already started souring much before the arrest after a trade deal fell through in 2017. Many major carriers in the country, some of which have been outspoken in their support of Huawei, have decided to shun the company and opt for western alternatives instead. One of them, Bell Mobility, even announced that it will use equipment from its Finnish rival, Nokia.

Huawei is considered a symbol for China’s technological prowess, and the arrest is seen by the Chinese Communist Party as an attack on its symbol of technological achievement. The Chinese state-owned newspaper the Global Times calls the act a “political persecution launched by the US, with the intention to contain China’s high-tech development.” The China Daily also criticized the court ruling as unfair and potentially harmful in mending the Canada-China relations.

There has also been a backlash from legal experts and family members of the detained Canadians on the Canadian policy of letting the extradition charges proceed and not going with a prisoner swap. Mr. Mulroney, however, feels that it would legitimize “hostage diplomacy”, which would put at risk all traveling Canadians for arbitrary arrests to gain political leverage. There is a stark difference between the condition of the hostages and that of Meng Wanzhou, for while the two prisoners spend their days in small cells in isolation, interrupted by interrogation and bland meals, Wanzhou lives in her Vancouver mansion, being happy about the fact that she can spend more time reading and oil painting, now.

The Canadian government is also claiming that it has to let the extradition process go on without political interference as to not compromise the independent, legal decision of surrendering the Huawei CFO. Mr. Mulroney has said that “it wouldn’t be the right thing to do. It would compromise the integrity of both our democracy and our justice system,” and that their values need to count for something. Brian Greenspan, a Toronto lawyer with experience on extradition cases, has said that the government has the power to withdraw from the extradition case, and that the lessons from a previous case in which political pressure affected an international case, are being applied wrongly here.

There are many sides to this tension, complicated by previous feuds, economic decisions, the detentions of the Canadians and Wanzhou and the difference between the political and the legal, and the many opinions on whether it should be that way.

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February 4, 2021 5:11 PM

Neom: The Futuristic town coming up in the Arabian desert

Ever since Mohammed bin Salman, popularly known as MBS, became the crown prince of Saudi Arabia in 2017 at a young age of 32 year, he has been working on twin objectives of liberalising the conservative laws of the country and diversifying its oil based economy.

In the last 2 to 3 years Saudi Arabia has done away with religious enforcers, allowed women to drive, loosened the strict clothing norms for women, reopened the cinema and other entertainment events by scaling down many of its ultra conservative rules and regulation.

File:Mohammad bin Salman (2018-06-14) 01.jpg
Mohammad Bin Salman | Source: Russian Presidential Executive Office via Wikimedia

On the economy front, MBS has started many projects to lessen the dependence on oil, of which Neom is the centerpiece. NEOM is a technologically advanced mega-city being built from scratch in the sands at the coast of the Red Sea and is considered to be the dream project of MBS. This magnificent city, will take about $500 billion to complete and be thirty three times the size of New York City. This project will make the country a technology hub, attract international tourists, and will reduce Saudi Arabian economy’s over-dependence on oil.

Neom will boost some of the features which are today seen only in some sci-fi movies. It will employ cloud seeding technology to bring rain in the desert town, display an artificial moon, and use flying taxis for intra city travel. The town will have some functional autonomy which include relaxed laws for women and tourists.

Three of the biggest consultancy firms of the world, Boston Consulting, Oliver Wyman and McKinsey & Co, were roped in by MBS in 2017, to bring his vision of Neom to life. “This is a challenge. The dream is easy but making it come true is very difficult” MBS said.

While the entire project is slated to be completed in 2025, the international airport is already constructed at Neom. Phase-1 of the project was supposed to be completed in 2020, however it was delayed due to the oil price crash and COVID-19 pandemic. “All of these projects will be delayed. It's not paused; it's continuing more slowly” said Ali Shihabi, a Washington-based analyst on the Neom advisory board.

Abdul-Rahim Al-Huwaiti, protestor who was shot dead | Source: MENA Rights

Saudi Arabia has done a wonderful job of letting the imaginations run wild to come up with an idea and start implementation, there are few downsides as well. The area where Neom is being built is home to the Huwaitat tribe who have to relocate elsewhere for the construction to take place. While most of the tribe members agreed to move on, few were not willing to do so. Abdul-Rahim Al-Huwaiti was one such member who actively resisted and criticized the government in videos posted on youtube. He was unfortunately shot dead by the government forces during an operation to clear his house in April, 2020 giving a blot to this wonderful project.

There are still some obstacles in the ‘perfect’ project of modernising Saudi Arabia. “The main project risk probably is the potential lack of large private investors. The local and international private sector will want to hear a lot more detail than what has been published to date” said Steffen Hertog, a leading scholar on Saudi Arabia, pointing out that a lot of clarifications and work is still required.

There is still time before this magnificent town rises to its full glory on the coast of the red sea in Arabian desert. We are eagerly waiting to see the flawless execution of a grand vision of Saudi Arabian crown prince Mohannad bin Salman in the form of the modern marvel, Neom.

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