VANCOUVER--A top executive of Chinese telecoms giant Huawei Technologies Co Ltd was granted bail by a Canadian court on Tuesday, 10 days after her arrest in Vancouver at the request of U.S. authorities sparked a diplomatic dispute.
Meng Wanzhou, Huawei's chief financial officer and the daughter of its founder, faces U.S. claims that she misled multinational banks about Iran-linked transactions, putting the banks at risk of violating U.S. sanctions.
In a court hearing in Vancouver, British Columbia, Justice William Ehrcke granted C$10 million ($7.5 million) bail to Meng, who has been jailed since her arrest on Dec. 1. The courtroom erupted in applause when the decision was announced. Meng cried and hugged her lawyers.
Among conditions of her bail, the 46-year-old executive must wear an ankle monitor and stay at home from 11 p.m. to 6 a.m. Five friends pledged equity in their homes and other money as a guarantee she will not flee.
If a Canadian judge rules the case against Meng is strong enough, Canada's justice minister must next decide whether to extradite her to the United States. If so, Meng would face U.S. charges of conspiracy to defraud multiple financial institutions, with a maximum sentence of 30 years for each charge.
The arrest of Meng has put a further dampener on Chinese relations with the United States and Canada at a time when tensions were already high over an ongoing trade war and U.S. accusations of Chinese spying. U.S. President Donald Trump told Reuters on Tuesday he would intervene in the U.S. Justice Department's case against Meng if it would serve national security interests or help close a trade deal with China.
China had threatened severe consequences unless Canada released Meng immediately, and analysts have said retaliation from Beijing over the arrest was likely. The U.S. State Department is considering issuing a travel warning for its citizens, two sources said on Tuesday.
The Canadian government was considering issuing a similar warning, Canada's CTV network reported. Reuters was not able to confirm the report.
Earlier on Tuesday, the Canadian government said that one of its citizens in China had been detained. Two sources told Reuters the person detained was former Canadian diplomat Michael Kovrig. The Canadian government said it saw no explicit link to the Huawei case.
However, Guy Saint-Jacques, Canada's former ambassador to China, asked by the Canadian Broadcasting Corp whether the Kovrig detention was a coincidence, said: "In China there are no coincidences ... If they want to send you a message they will send you a message."
The Chinese embassy did not immediately reply to a request for comment.
