Canada judge rules Huawei CFO Meng's fraud case will proceed

extradition case against a senior Huawei executive can proceed to the next stage, a decision that is expected to further harm relations between China and Canada.

The Chinese embassy in Ottawa later warned Canada to drop the case and accused the United States of trying to bring down the Chinese tech giant.

Associate Chief Justice Heather Holmes said in her decision the allegations against Meng could constitute a crime in Canada as well and the extradition could therefore proceed.

It says Meng, 48, committed fraud by misleading the HSBC bank about the company’s business dealings in Iran.

sanctions against Iran, not a fraud case.

They maintain that since Canada does not have similar sanctions against Iran, no fraud occurred under its laws.

Meng’s approach to the double criminality analysis would seriously limit Canada’s ability to fulfill its international obligations in the extradition context for fraud and other economic crimes," Holmes wrote.

Holmes said Canada did not have economic sanctions against Iran at the time but noted the sanctions used by the U.S.

“China hereby expresses strong dissatisfaction and firm opposition to this decision, and has made serious representations with Canada,” the Chinese embassy in Ottawa said in a statement.

“The purpose of the United States is to bring down Huawei and other Chinese high-tech companies, and Canada has been acting in the process as an accomplice of the United States.".

In apparent retaliation for Meng’s arrest, China detained former Canadian diplomat Michael Kovrig and Canadian entrepreneur Michael Spavor.

Huawei is the biggest global supplier of network gear for phone and internet companies and some analysts say Chinese companies have flouted international rules and norms amid allegations of technology theft

“The United States thanks the Government of Canada for its continued assistance pursuant to the U.S./Canada Extradition Treaty in this ongoing matter,” The U.S Department of Justice said in a statement

A former Canadian ambassador to China, Guy Saint-Jacques, expects China to further punish Canada

First, unfortunately for Michael Kovrig and Michael Spavor, I expect that they will announce the cases will proceed to trial and it will become a lot more difficult to extract them from jail,” he said