China Confirms Detention of Second Canadian

Huawei executive gets bail in case rattling China ties

A paramilitary police officer cycles past the embassy of Canada in Beijing on Wednesday.

T-Mobile US Inc (TMUS.O) and Sprint Corp (S.N) expect their merger to be approved by a USA national security panel as early as next week, after their respective parent companies said they would consider curbing their use of equipment from China's Huawei Technologies [HWT.UL], people familiar with the matter told Reuters.

Hu Xijin, editor of the state-backed Global Times, a nationalistic tabloid, said on the Weibo social media platform the Chinese government would never concede that the Canadians' detentions were related to Meng's case.

Canadian businessman Michael Spavor, who worked with North Korea, is being investigated on suspicion of harming China's security, China said on Thursday, days after a former Canadian diplomat was detained in an escalating diplomatic row.

He said Beijing security and state security officials in the city of Dandong, Liaoning Province had taken measures against Spavor and Kovrig.

Spavor runs tours of North Korea along with sports, business and other exchanges through his company, Paektu Cultural Exchange. Other photos show him with both Kim Jong Un and National Basketball Association player Dennis Rodman.

China has warned that "many" of its citizens are now afraid to travel to Canada, fearing they could be targeted after the arrest of Huawei Chief Financial Officer Meng Wanzhou in Vancouver, British Columbia.

She faces more than 30 years in jail if convicted, but was freed on Can$10 million bail Tuesday night pending the outcome of an extradition hearing, which could take months, or even years, if appeals are made in the case.

Her case has angered Beijing and shaken Canada's relations with China, which is embroiled in a trade war with Washington.

The cancellation follows Canada's arrest - at the U.S.'s behest - of a leading Chinese telecom executive and Beijing's apparent retaliation by detaining two Canadians.

"Canada was granted consular access to Michael Kovrig". She is accused of violating US sanctions on Iran.

Canadian foreign ministry spokesman Guillaume Bérubé confirmed that Mr Spavor had contacted it earlier in the week because "he was being asked questions by Chinese authorities".

Spavor is the founder of a Paektu Cultural Exchange, focused on opening up worldwide ties with North Korea.

China is the second-biggest buyer of softwood lumber products and companies have increasingly looked to the Asian market as a destination for shipments amid Canada's ongoing softwood lumber dispute with the U.S.

For a while now Canada has been under pressure to ban the company from participating in 5G network development after three members from the Five Eyes intelligence-sharing alliance banned the company.

"They want to send a signal that they don't want outsiders in China to deal with North Korea". Guy Saint-Jacques, Canada's former ambassador to China, told broadcaster CBC that "In China, there are no coincidences...."

Canada is ostensibly already suffering collateral damage from its weighty neighbour's tensions with China, despite Ottawa's insistence that Meng's arrest was unrelated to the trade spat. It said his case had been raised directly with Chinese officials.

Ms Meng faces up to 30 years in prison in the United States if found guilty of the charges, the Canadian court heard.

Earlier this week, U.S. President Donald Trump complicated Canada's position when he said he might intervene in the Huawei case if it would help clinch a trade agreement with China, upending U.S. efforts to separate the court proceeding from U.S.

She has said she is innocent.

Chrystia Freeland, Canada's foreign minister, quickly appeared to take aim at Trump's comments.

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