Dec 5, 2018

Top Huawei executive arrested on suspicion of violating Iran sanctions

Photo: Omar Marques/SOPA Images/LightRocket via Getty Images

Huawei chief financial officer Wanzhou Meng is facing extradition to the United States after being arrested in Canada on suspicion of violating U.S. sanctions on Iran, the Globe and Mail reports.

Why it matters: A court hearing has been set for Friday. If Meng is extradited, it will mark the first time a Huawei official will face U.S. authorities.

The backdrop: Chinese phone makers Huawei and ZTE have been suspected of repeatedly violating U.S. sanctions on Iran and North Korea. In July, President Trump reversed a ban on American companies doing business with ZTE in order to pave the way for trade talks with Chinese President Xi Jinping.

Worth noting: Meng was arrested on Dec. 1 — the same day Trump and Xi negotiated a temporary ceasefire in the U.S.-China trade war.

Our thought bubble, via Axios contributor Bill Bishop: This move can not be overstated. If the U.S. says Huawei violated Iran sanctions, like ZTE did, a ZTE-like ban for U.S. suppliers to Huawei is not impossible. It may not go that far, but expect investors to shoot first Thursday and dump shares of big Huawei suppliers, as they did with ZTE.

Go deeper: After Huawei arrest, experts say China could retaliate

Go deeper

America's food heroes

Photos: Charlie Riedel/AP (L); Brent Stirton/Getty Images

The people who grow, process and keep food stocked on shelves are doing heroic work in these conditions, often for bottom-barrel pay.

Why it matters: Millions of Americans don't have the luxury of working from home, and it's essential that food workers keep working so we can keep eating.

Go deeperArrow10 mins ago - Health

Acting Navy secretary resigns over handling of virus-infected ship

Photo: Chip Somodevilla/Getty Images

Acting Navy Secretary Thomas Modly resigned Tuesday after apologizing for comments he made about Capt. Brett Crozier, who was removed after a letter he wrote pleading with the Navy to address the coronavirus outbreak aboard the USS Theodore Roosevelt was leaked to the press. The resignation was first reported by Politico.

Why it matters: The controversy over Crozier's removal was exacerbated after audio leaked of Modly's address to the crew, in which he said Crozier was either "too naive or too stupid to be a commanding officer of a ship like this." After initially backing Modly's decision, President Trump said at a briefing Monday that he would "get involved."

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 4 p.m. ET: 1,407,123— Total deaths: 81,103 — Total recoveries: 297,934Map.
  2. U.S.: Total confirmed cases as of 4 p.m. ET: 386,800 — Total deaths: 12,285 — Total recoveries: 20,191Map.
  3. Trump admin latest: Trump removes watchdog overseeing rollout of $2 trillion coronavirus bill.
  4. Federal government latest: Senate looks to increase coronavirus relief for small businesses this week — Testing capacity is still lagging far behind demand.
  5. World update: China reopens Wuhan after 10-week coronavirus lockdown.
  6. Wisconsin primary in photos: Thousands gathered to cast ballots in-person during the height of the coronavirus crisis in the U.S.
  7. What should I do? Pets, moving and personal health. Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it.

Subscribe to Mike Allen's Axios AM to follow our coronavirus coverage each morning from your inbox.