Meng Wanzhou’s Extradition Case: China’s Hostage Diplomacy

In December of 2018, Meng Wanzhou, deputy chair and Chief Financial Officer of Huawei, was arrested by Canadian authorities at Vancouver International Airport on an extradition request by U.S. authorities. A few days after her detention, two Canadian citizens, businessman Michael Spavor and former diplomat Michael Kovrig, were arrested in China and charged with espionage. The Chinese government insists on Meng’s innocence and demands her release, while Canada considers the detention of its two citizens an illegitimate retaliation attempt. The outcome of Meng's case would indicate whether Canada prioritises the mutual political and economic interests between Canada and China, or still comply with the extradition treaty with its long-lasting ally, the U.S.

 Meng Wanzhou has been accused of bank and wire fraud of the U.S. sanctions on Iran. The allegations draw attention to the relationship between Huawei and SkyCom, where the latter, according to U.S. prosecutors, is a “hidden” subsidiary that engaged in business with Iran. Meng denied the allegations in 2013, saying, "Huawei has sold all its shares in SkyCom, and I (Meng) also quit my position on the SkyCom board." However, her statements led to accusations of misrepresentation as Huawei’s shares in Skycom were in fact sold to a company that is also a subsidiary of Huawei. U.S. prosecutors accused Meng of deceiving financial institutions into facilitating illicit transactions.

Speaking on behalf of the Chinese government, senior Chinese Foreign Ministry official Lu Kang argued that the U.S. demanded “dozens” of countries to detain Meng as she travelled across Asia between September and November of 2018. Kang did not, however, provide any evidence to prove this claim. Kang repeatedly criticises Canada for having been the only country to follow through with its extradition demand, in contrast to the U.S.’s many other allies who had not responded, despite having signed extradition treaties with Washington and received the same request. Having repeatedly expressed that he believes in Meng’s innocence, Kang considers the extradition request of the U.S. as “ridiculous.”

 However, Joe Kelly, Huawei spokesperson, testified that the company had no information on extradition requests sent elsewhere. The U.S. and the other countries that allegedly received the requests did not comment on any claims testifying their existence, leaving Kang’s assertion unresolved.  Canada defends its decision on the grounds that it was honoring the country’s extradition treaty with the U.S. that dates back to 1971, requiring Canadian authorities to cooperate with the U.S. in any such cases. The treaty demands extradition insofar as Meng’s alleged actions in the U.S. are considered criminal in Canada. The fact that Meng lied about her company’s dealings with Iran during meetings with potential investors at banks and attempted to involve them in breaching the sanctions is considered fraud according to Canadian government lawyers, validating the grounds of extradition. 

Just days after Meng’s arrest in Vancouver, BC, the two Canadian citizens Michael Spavor and Michael Kovrig, were arrested in different cities in China and charged with "spying on national secrets" and providing intelligence for "outside entities". China denies the claims that the arrests were made in retaliation against Meng’s detention, as Kang insisted “[it] was nothing more than coincidence. In today’s world, that happens.” Despite the fact that Canada considers the arrests "arbitrary", Kang continues to understand their intentions to be hostile, “they want to blame us. They want to say it’s Meng. And we’re saying it’s the two Michaels,” Phillip Calvert, a Fellow at the Canadian Global Affairs Institute and a senior fellow at the China Institute of the University of Alberta, defines the relationship between Canada and China as having become “extremely transactional”: based on mutual gains and easily undermined by recriminations. 

Meng Wanzhou’s case is not the first instance of China prevailing over hostage diplomacy. In 2014, during another extradition process in Canada against a Chinese citizen, the Chinese government detained a Canadian couple, Kevin and Julia Garratt. Also, since tensions between the two countries began to mount in 2019, two Australian citizens have been under arrest in China.

In an interview with Kang, Globe and Mail journalist Nathan VanderKlippe cynically asked if China's foreign policy was centered on fear mongering. “That’s never our policy,” Kang responded, arguing that Chinese diplomacy has actively worked towards fostering an environment conducive for the country’s internal development and cooperation with the international community. He also pointed out that no promises were made about dismissing  Spavor and Kovrig should Meng be released “from the very beginning, we told the Canadian public very clearly those are two issues totally different by nature.”. However, although not said explicitly, China’s history of hostage diplomacy leads us to assume that two Michaels would be freed if Meng were released. 

 It remains uncertain whether other U.S. allies did receive and choose to dismiss the call to detain Meng as the senior Chinese Foreign Ministry official Lu Kang claims. Considering that these countries are also acting in accordance with the same sanctions placed on Iran, it is likely that the criteria of double criminality would pass within their territories, further invalidating their choice to ignore the call. However, if it is indeed the case that the countries in question decided against detaining Meng despite having received the request, China’s aggression towards Canada may be understandable. Nonetheless, China appears to demonstrate a pattern of hostage diplomacy, which demands the concern of the international community and Canada in particular, given that it is their citizens currently at stake. Meng’s hearing has entered the final round and its verdict is likely to determine the futures of Kovrig and Spavor, albeit indirectly.