Next Generation 5G and the US-China “Cellphone War”: The Arrest and Trial of Meng Wanzhou

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Trade War

The following article was first published in December 2018.

Update, January 23, 2020

5G is strategic.

The US is pressuring its allies including Canada to dump China’s Huawei. In turn the  extradition trial agains HuaWei Executive

In recent developments, the Trudeau cabinet met behind closed doors at a three day “cabinet retreat”. Canada’s Public Safety Minister Bill Blair intimated that geopolitical and strategic issues are being contemplated.

Careful timing: the weekend Winnipeg Trudeau cabinet meeting  gave the green light.

The Extradition Trial against Huawei executive Meng Wanzhou was launched in Vancouver on Monday, January 20 on trumped up charges of financial fraud.

The ultimate objective is to exclude China from obtaining 5G  contracts with Western telecom companies. 5G has also military and intelligence applications.

Consultations were also  held under the auspices of the so-called Five Eyes intelligence Group (US, UK, Canada, Australia, New Zealand) which is largely dominated by US intelligence.

“The United States and Australia, allies of Canada in the Five Eyes intelligence-sharing group, have already barred Huawei … from supplying gear for their 5G networks.”

The Canadian government has previously said its 5G decision will hinge on security considerations and the advice of government experts.”  (Globe and Mail)

How will Beijing react?

NPR Scan

Michel Chossudovsky January 23, 2020

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The unspoken US policy objective behind the arrest of  Huawei CFO Meng Wanzhou on trumped up charges, consists in breaking China’s technological lead in wireless telecommunications. 

What is at stake is a coordinated US and allied intelligence initiative to ban China’s Huawei Technologies Co. Ltd from the “next generation” state of the art 5G global mobile phone network.

The intelligence operation is led by “Five Eyes”, a so-called “intelligence-sharing alliance to combat espionage” between the US and its four (junior) Anglo-Saxon partners: UK, Canada, Australia, New Zealand.  

Western media tabloids repeatedly refer to legitimate “national security concerns” as a justification for the banning of China’s telecom equipment.

What is at stake is a fierce battle in the global wireless telecom industry. 

Spy Chiefs Meet Behind Closed Doors in Nova Scotia 

On July 17, the spy chiefs from the “Five Eyes” nations travelled from Ottawa to Nova Scotia for a meeting with Prime Minister Justin Trudeau. (who was on a Nova Scotia tour including meetings with NS Premier Stephen McNeil)

The meeting with the “Five Eyes” spy chiefs hosted by Trudeau was held at an (unnamed) coastal resort in Nova Scotia. It was casually described by The Sydney Morning Herald (SMH) as “an informal evening after intense talks in nearby Ottawa”. Nearby?

The encounter with Canada’s Prime Minister was neither informal nor spontaneous. His presence at that meeting served to provide a “political green-light” to the “Five Eyes”  “intelligence campaign” against China:

“Trudeau, …  dropped in on the gathering to share some thoughts about geopolitical threats [from China and Russia].

In the months that followed that July 17 dinner, an unprecedented campaign has been waged by those present – Australia, the US, Canada, New Zealand and the UK – to block Chinese tech giant Huawei from supplying equipment for their next-generation wireless networks.

This increasingly muscular posture towards Beijing culminated in last week’s arrest of Huawei’s chief financial officer, Meng Wanzhou, in Vancouver, over alleged breaches of US sanctions with Iran. (Sidney Morning Herald, December 13, 2018)

CIA Director Gina Haspel and Britain’s MI6 Chief Michael Younger were in attendance. The intent of this meeting was crystal clear. The arrest of Meng Wanzhou was part of a broader intelligence strategy directed against China which had been planned well in advance.

Trudeau’s July 16-17 tour in Nova Scotia was reported upon. Sofar, the Canadian media has failed to mention Trudeau’s July 17, 2018 meeting with the “Five Eyes” chiefs of intelligence.

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Screen-scan  of Wall Street Journal, December 14, 2018

Failure of the US Telecom Industries

It’s what you call “Fair Competition”. Bring in the Spy Chiefs!

Let’s face it : The US based telecom conglomerates are up against the wall.  The industry is in a shambles.

Moreover, the US no longer produces smart phones. Its manufacturing base in Silicon Valley has been closed down. US smart phone companies increasingly rely on China not only for cellphone production but also for the development of intellectual property.

China is not only the largest producer of cellphones Worldwide, it is a leader in wireless technology. According to an August 2018 report by Deloitte Consulting:

China is winning the race against the United States to build a faster nationwide wireless network that uses 5G technology, billed as the mobile industry’s future. Unless the U.S. moves more quickly, it will be at a major disadvantage when it comes to creating dominant new companies in the emerging space….

Accordingly, countries that adopt 5G first are expected to experience disproportionate gains in macroeconomic impact compared to those that lag,” the report’s authors said.

U.S. companies have been sounding the alarm over a purported race against China over 5G, perhaps playing to the fears and strategic desires of the Trump White House. (Fortune, August 7, 2018)

Global Research is based in Montreal.

The complicity of the Canadian government in the arrest of  CFO Meng Wanzhou on behalf of the Trump White House is reprehensible. It puts in jeopardy Canada’s longstanding economic, social and cultural ties with the People’s Republic of China (PRC).

UPDATE

Did the Canadian Security Intelligence Service (CSIS) play a role in the arrest of Ms. Meng Wanzhou on December 1, 2018?

The arrest of Meng Wanzhou on December 1 in Vancouver coincided with the evening dinner meeting between presidents Xi Jinping and Donald Trump in Buenos Aires on the sidelines of the G-20 summit.

Moreover, according to China’s news agency Xinhua Canada’s Prime Minister Trudeau had advanced knowledge of the arrest and did nothing to prevent it from happening:

“…He didn’t notify the Chinese side. Instead, he let this kind of nasty thing to happen and assisted the US side’s unilateral hegemonic behaviour – this has hurt the feeling of Chinese people.”

As outlined above, Prime Minister Trudeau had already granted the green-light to the “Five Eyes” intelligence chiefs at the July 17 secret meeting in Nova Scotia.

Huawei portrayed by CSIS as a threat to National Security

While news reports and official statements intimate that Huawei constitutes a potential cybersecurity risk, Ms. Meng Wanzhou was arrested on December 1, 2018 in Vancouver for allegedly having violated the US sponsored Iran sanctions regime.

What was the role of Canada’s Security and Intelligence Service (CSIS) in the arrest of Meng Wanzhou?  CSIS Director David Vigneault hosted the “Five Eyes” meeting of spy chiefs in Ottawa and Nova Scotia on July 17. Prime Minister Trudeau was present at the Novo Scotia meeting.

December 4, 2018: Three days after the arrest of Meng Wenzhou, Canada’s spy chief David Vigneault addressed a luncheon meeting at the Economic Club (EC) of  Canada in Toronto, intimating that “hostile states [China] are targeting large [Canadian] companies and universities”.  According to Vigneault:

 “Many of these advanced technologies are dual-use in nature in that they could advance a country’s economic, security and military interests.”

In his address, Canada’s spy chief warned of the danger of “state-sponsored espionage through technology such as next-generation 5G mobile networks.” (Globe and Mail December 4, 2018)

“Canadian Security Intelligence Service director David Vigneault’s comments come as three of the country’s Five Eyes intelligence-sharing allies have barred wireless carriers from installing equipment made by China’s Huawei Technologies Co. Ltd. in the 5G infrastructure they are building to provide an even-more-connected network for smartphone users.

On December 3, 2018, the head of Britain’s Secret Intelligence Service, known as MI6, publicly raised security concerns about Huawei telecommunications being involved in his country’s communications infrastructure.

Both Canada and Britain are conducting security reviews of the Chinese company’s 5G technology.

Mr. Vigneault said large corporations typically hold the most valuable information but they try to put in state-of-the-art cyberdefences, while Canadian universities are largely unaware how they are vulnerable to economic espionage and the threat of infiltration by unnamed state actors who would use their expertise to gain an edge in military technologies. Huawei has developed research and development partnerships with many of Canada’s leading academic institutions.” (Globe and Mail, December 4, 2018, emphasis added)

It should be noted that the meeting and the specific theme of David Vigneault’s presentation at the Economic Club on December 4, 2018 had been scheduled well in advance of the arrest of Ms. Meng Wanzhou on December 1.  (See Economic Club )
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Michel Chossudovsky, Global Research,  Montreal, December 16, 2018, updated December 20, 2018

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Selected Article

America’s “Cell Phone War” against China: HuaWei CFO Meng Wanzhou Held Hostage by Canada

By Christopher Black, December 14, 2018

It is clear the US is pushing the battle line to our door … We can completely regard the US arrest of Meng Wanzhou as a declaration of war against China.”

China’s Toughness v. Weak-Kneed Russia: Beijing’s Response to Arrest of Meng Wanzhou

By Stephen Lendman, December 14, 2018

In response to the lawless arrest, detention, and mistreatment of Huawei Technologies’ chief financial officer Sabrina Meng Wanzhou by Canadian authorities in Vancouver on December 1, acting as a Trump regime proxy, Beijing demanded her immediate release, warning of “grave consequences” otherwise.

“Five Eyes” Intelligence Agencies Behind Drive Against Chinese Telecom Giant Huawei.

By Nick Beams, December 14, 2018

Evidence has come to light that US operations against the Chinese telecommunications giant HuaWei (华为) and the arrest and detention of one of its top executives, Meng Wanzhou, to face criminal charges of fraud brought by the US Justice Department are the outcome of a coordinated campaign by the intelligence agencies of the so-called “Five Eyes” network.

Trump and China: Towards a Cold or Hot War?

By Marc Vandepitte, December 12, 2018

At first glance, the dispute between the US and China revolves around unfair competition and theft of intellectual property. On closer inspection it is about something much more fundamental, namely frantic attempts by Washington to preserve its hegemony over this planet. Are we heading for a clash between the two titans?

Video: Behind the US Attack on Chinese Smartphones

By Manlio Dinucci, December 12, 2018

After having imposed heavy taxes on Chinese merchandise – 250 billion dollars – President Trump, at the G-20, accepted a “truce” by postponing further measures, mainly because the US economy has been struck by Chinese retaliation.

On World Human Rights Day, the Inhumane Treatment of Huawei Meng Wanzhou by Canadian Authorities Becomes Clearer

By Adam Garrie, December 10, 2018

After summoning the Canadian Ambassador in Beijing, China has now summoned the American Ambassador to discuss the status of Meng Wanzhou – the Chinese political prisoner who remains behind bars in Canada in spite of having committed no wrongdoing.

Trump’s Trade War with China: Imagine What Would Happen if China Decided to Impose Economic Sanctions on the USA?

By Prof Michel Chossudovsky, November 29, 2018

What Trump does not realize is that the trade deficit with China contributes to sustaining America’s retail economy, it also contributes to the growth of America’s GDP.

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About the author:

Michel Chossudovsky is an award-winning author, Professor of Economics (emeritus) at the University of Ottawa, Founder and Director of the Centre for Research on Globalization (CRG), Montreal, Editor of Global Research. He has taught as visiting professor in Western Europe, Southeast Asia, the Pacific and Latin America. He has served as economic adviser to governments of developing countries and has acted as a consultant for several international organizations. He is the author of 13 books. He is a contributor to the Encyclopaedia Britannica. His writings have been published in more than twenty languages. In 2014, he was awarded the Gold Medal for Merit of the Republic of Serbia for his writings on NATO's war of aggression against Yugoslavia. He can be reached at [email protected]

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