China ups pressure as tech exec's hearing goes into Tuesday

A jailed Chinese technology executive will have to wait at least more day to see if she will be released on bail in a case that has raised U.S.-China tensions and complicated efforts to resolve a trade dispute that has roiled financial markets and threatened global economic growth.

Meng Wanzhou, the chief financial officer of Chinese telecommunications giant Huawei and daughter of its founder, was detained at the request of the U.S. during a layover at the Vancouver airport December 1 the same day that Presidents Donald Trump and Xi Jinping of China agreed to a 90-day cease-fire in the trade dispute that threatens to disrupt global commerce.

The U.S. has accused Huawei of using a Hong Kong shell company to sell equipment to Iran in violation of U.S. sanctions. It also says Meng and Huawei misled banks about the company's business dealings in Iran.

After a second daylong session, Justice William Ehrcke said the bail hearing would continue Tuesday. In urging the court to reject Meng's bail request, prosecutor John Gibb-Carsley noted the Huawei executive has vast resources and a strong incentive to flee as she is facing fraud charges in the United States that could put her in prison for 30 years.

Gibb-Carsley later told the judge that if he does decide to grant bail it should include house arrest. David Martin, Meng's lawyer, said Meng was willing to pay for a surveillance company to monitor her and wear an ankle monitor but she wanted to be able to travel around Vancouver and its suburbs.

Scott Filer of Lions Gate Risk Management group said his company would make a citizen's arrest if she breached bail conditions.

Martin said Meng's husband would put up both of their Vancouver homes plus USD 1 million Canadian (USD 750,000) for a total value of USD 15 million Canadian (USD 11.2 million) as collateral.

The judge cast doubt on that proposal, saying Meng's husband isn't a resident of British Columbia a requirement for him to act as a guarantor that his wife won't flee and his visitor visa expires in February.

The prosecutor said her husband has no meaningful connections to Vancouver and spends only two or three weeks a year in the city.

Gibb-Carsley also expressed concern about the idea of using a security company paid by Meng. He said later that USD 15 million Canadian (USD 11.2 million) would be an appropriate amount if the judge granted bail, but he said half should be in cash.

Meng's arrest has fueled U.S.-China trade tensions at a time when the two countries are seeking to resolve a dispute over Beijing's technology and industrial strategy.

Both sides have sought to keep the issues separate, at least so far, but the arrest has roiled markets, with stock markets worldwide down again Monday.

The hearing has sparked widespread interest, and the courtroom was packed again Monday with media and spectators, including some who came to support Meng.

One man in the gallery brought binoculars to have a closer look at Meng, while outside court a man and woman held a sign that read "Free Ms. Meng."
Le warned both countries that Beijing would take steps based on their response. Asked Monday what those steps might be, Chinese Foreign Ministry spokesman Lu Kang said only, "It totally depends on the Canadian side itself."