Connect with us

Technology

Huawei CFO Meng Wanzhou Leaves Canada After US Deal on Fraud Charges, Detained Canadians Head Home

Published

on

By Reuters | Updated: 25 September 2021

Huawei Chief Financial Officer Meng Wanzhou flew home to China on Friday after reaching an agreement with US prosecutors to end the bank fraud case against her, relieving a point of tension between China and the United States.

Within hours of the news of the deal, two Canadians who were arrested shortly after Meng was taken into custody in December 2018 were released from Chinese jails and were on their way back to Canada. Beijing had denied that their arrests were linked.

The years-long extradition drama has been a central source of discord in increasingly rocky ties between Beijing and Washington, with Chinese officials signalling that the case needed to be dropped to help end a diplomatic stalemate.

The deal also opens US President Joe Biden to criticism from China hawks in Washington who argue his administration is capitulating to China and one of its top companies at the centre of a global technology rivalry between the two countries.

Meng was arrested at Vancouver International Airport on a US warrant, and indicted on bank and wire fraud charges for allegedly misleading HSBC in 2013 about the telecommunications equipment giant’s business dealings in Iran.

In an exclusive on Friday, Reuters reported that the United States had reached a deferred prosecution agreement with Meng.

Nicole Boeckmann, the acting US attorney in Brooklyn, said that in entering into the agreement, “Meng has taken responsibility for her principal role in perpetrating a scheme to defraud a global financial institution.”

The agreement pertains only to Meng, and the US Justice Department said it is preparing for trial against Huawei and looks forward to proving its case in court.

China’s foreign ministry did not immediately respond to a request for comment on the release of Meng or the Canadians.

A spokeswoman for Huawei declined to comment.

A person familiar with the matter said Meng – the daughter of Huawei founder Ren Zhengfei – had left Canada on a flight to Shenzhen.

The two Canadians, businessman Michael Spavor and former diplomat Michael Kovrig, had been held in China for more than 1,000 days. In August, a Chinese court sentenced Spavor to 11 years in prison for espionage.

The International Crisis Group, where Kovrig works, said it was “overjoyed” at the “most just decision” to release him, thanking Canada and the United States for their roles. “The day we have been waiting for 1,020 days has finally arrived,” the advocacy group said in a statement.

Prime Minister Justin Trudeau told reporters in brief remarks late on Friday the two men had left Chinese airspace just minutes before. He was not asked whether the two countries had struck a bilateral deal.

“I want to thank our allies and partners around the world in the international community who have stood steadfast in solidarity with Canada and with these two Canadians,” he said.

At a hearing in Brooklyn federal court on Friday, which Meng attended virtually from Canada, Assistant US Attorney David Kessler said the government would move to dismiss the charges against her if she complies with all of her obligations under the agreement, which ends in December 2022. He added that Meng will be released on a personal recognisance bond, and that the United States plans to withdraw its request to Canada for her extradition.

Meng pleaded not guilty to the charges in the hearing. When US District Court Judge Ann Donnelly later accepted the deferred prosecution agreement, Meng sighed audibly.

A Canadian judge later signed Meng’s order of discharge, vacating her bail conditions and allowing her to go free after nearly three years of house arrest.

She was emotional after the judge’s order, hugging and thanking her lawyers.

Speaking to supporters and reporters on the steps of the court afterward, Meng thanked the judge for her “fairness” and talked of how the case had turned her life “upside down”.

Meng was confined to her expensive Vancouver home at night and monitored 24/7 by private security that she paid for as part of her bail agreement. Referred to by Chinese state media as the “Princess of Huawei,” she was required to wear an electronic ankle bracelet to monitor her movements, which became fodder for the tabloids when it hung above her designer shoes.

‘Huawei confidential’
Articles published by Reuters in 2012 and 2013 about Huawei, Hong Kong-registered company Skycom and Meng figured prominently in the US criminal case against her. Reuters reported that Skycom had offered to sell at least EUR 1.3 million (roughly Rs. 11,24,59,000) worth of embargoed Hewlett-Packard computer equipment to Iran’s largest mobile-phone operator in 2010.

Reuters also reported numerous financial and personnel links between Huawei and Skycom, including that Meng had served on Skycom’s board of directors between February 2008 and April 2009. The stories prompted HSBC to question Meng about Reuters findings.

Huawei was placed on a US trade blacklist in 2019 that restricts sales to the company for activities contrary to US national security and foreign policy interests. The restrictions have hobbled the company, which suffered its biggest revenue drop in the first half of 2021, after the US supply restrictions drove it to sell a chunk of its once-dominant handset business before new growth areas have matured.

The criminal case against Meng and Huawei is cited in the blacklisting. Huawei is charged with operating as a criminal enterprise, stealing trade secrets and defrauding financial institutions. It has pleaded not guilty.

A Canadian government official said Ottawa would not comment until the US court proceedings were over.

China vs USA
Huawei has become a dirty word in Washington, with China hawks in Congress quick to react to any news that could be construed as the United States being soft, despite Huawei’s struggles under the trade restrictions.

Then-President Donald Trump politicised the case when he told Reuters soon after Meng’s arrest that he would intervene if it would serve national security or help secure a trade deal. Meng’s lawyers have said she was a pawn in the political battle between the two super powers.

Republican China hardliners in Congress called Friday’s deal a “capitulation.”

“Instead of standing firm against China’s hostage-taking and blackmail, President Biden folded,” Republican Senator Tom Cotton said in a statement.

Senior US officials have said that Meng’s case was being handled solely by the Justice Department and the case had no bearing on the US approach to strained ties with China.

During US Deputy Secretary of State Wendy Sherman’s July trip to China, Chinese Vice Foreign Minister Xie Feng insisted that the United States drop its extradition case against Meng.

US officials have acknowledged that Beijing had linked Meng’s case to the case of the two detained Canadians, but insisted that Washington would not be drawn into viewing them as bargaining chips.

© Thomson Reuters 2021

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Internet

Google’s Massive Data Centres in US Spark Worry Over Scarce Western Water

Published

on

By Associated Press | Updated: 23 October 2021

Now a critical part of modern computing, data centres help people stream movies on Netflix, conduct transactions on PayPal, post updates on Facebook, store trillions of photos and more. But a single facility can also churn through millions of gallons of water per day to keep hot-running equipment cool.

Google wants to build at least two more data centres in The Dalles, worrying some residents who fear there eventually won’t be enough water for everyone — including for area farms and fruit orchards, which are by far the biggest users.

Across the United States, there has been some mild pushback as tech companies build and expand data centres — conflicts likely to grow as water becomes a more precious resource amid the threat of climate change and as the demand for cloud computing grows. Some tech giants have been using cutting-edge research and development to find less impactful cooling methods, but there are those who say the companies can still do more to be environmentally sustainable.

The concerns are understandable in The Dalles, the seat of Wasco County, which is suffering extreme and exceptional drought, according to the US Drought Monitor. The region last summer endured its hottest days on record, reaching 118 degrees Fahrenheit (48 Celsius) in The Dalles.

The Dalles is adjacent to the the mighty Columbia River, but the new data centres wouldn’t be able to use that water and instead would have to take water from rivers and groundwater that has gone through the city’s water treatment plant.

However, the snowpack in the nearby Cascade Range that feeds the aquifers varies wildly year-to-year and glaciers are melting. Most aquifers in north-central Oregon are declining, according to the US Geological Survey Groundwater Resources Program.

Adding to the unease: The 15,000 town residents don’t know how much water the proposed data centres will use, because Google calls it a trade secret. Even the town councillors, who are scheduled to vote on the proposal on November 8, had to wait until this week to find out.

Dave Anderson, public works director for The Dalles, said Google obtained the rights to 3.9 million gallons of water per day when it purchased land formerly home to an aluminium smelter. Google is requesting less water for the new data centres than that amount and would transfer those rights to the city, Anderson said.

“The city comes out ahead,” he said.

For its part, Google said it’s “committed to the long-term health of the county’s economy and natural resources.”

“We’re excited that we’re continuing conversations with local officials on an agreement that allows us to keep growing while also supporting the community,” Google said, adding that the expansion proposal includes a potential aquifer program to store water and increase supply during drier periods.

The US hosts 30 percent of the world’s data centres, more than any other country. Some data centres are trying to become more efficient in water consumption, for example by recycling the same water several times through a centre before discharging it. Google even uses treated sewage water, instead of using drinking water as many data centres do, to cool its facility in Douglas County, Georgia.

Facebook’s first data centre took advantage of the cold high-desert air in Prineville, Oregon, to chill its servers, and went a step further when it built a centre in Lulea, Sweden, near the Arctic Circle.

Microsoft even placed a small data centre, enclosed in what looks like a giant cigar, on the seafloor off Scotland. After retrieving the barnacle-encrusted container last year after two years, company employees saw improvement in overall reliability because the servers weren’t subjected to temperature fluctuations and corrosion from oxygen and humidity. Team leader Ben Cutler said the experiment shows data centres can be kept cool without tapping freshwater resources.

A study published in May by researchers at Virginia Tech and Lawrence Berkeley National Laboratory showed one-fifth of data centres rely on water from moderately to highly stressed watersheds.

Tech companies typically consider tax breaks and availability of cheap electricity and land when placing data centres, said study co-author Landon Marston, assistant professor of civil and environmental engineering at Virginia Tech.

They need to consider water impacts more seriously, and put the facilities in regions where they can be better sustained, both for the good of the environment and their own bottom line, Marston said.

“It’s also a risk and resilience issue that data centres and their operators need to face, because the drought that we’re seeing in the West is expected to get worse,” Marston said.

About an hour’s drive east of The Dalles, Amazon is giving back some of the water its massive data centres use. Amazon’s sprawling campuses, spread between Boardman and Umatilla, Oregon, butt up against farmland, a cheese factory and neighbourhoods. Like many data centres, they use water primarily in summer, with the servers being air-cooled the rest of the year.

About two-thirds of the water Amazon uses evaporates. The rest is treated and sent to irrigation canals that feed crops and pastures.

Umatilla City Manager Dave Stockdale appreciates that farms and ranches are getting that water, since the main issue the city had as Amazon’s facilities grew was that the city water treatment plant couldn’t have handled the data centres’ discharge.

John DeVoe, executive director of WaterWatch of Oregon, which seeks reform of water laws to protect and restore rivers, criticised it as a “corporate feel good tactic.”

“Does it actually mitigate for any harm of the server farm’s actual use of water on other interests who may also be using the same source water, like the environment, fish and wildlife?” DeVoe said.

Adam Selipsky, CEO of Amazon Web Services, insists that Amazon feels a sense of responsibility for its impacts.

“We have intentionally been very conscious about water usage in any of these projects,” he said, adding that the centres brought economic activity and jobs to the region.

Dawn Rasmussen, who lives on the outskirts of The Dalles, worries that her town is making a mistake in negotiating with Google, likening it to David versus Goliath.

She’s seen the level of her well-water drop year after year and worries sooner or later there won’t be enough for everyone.

“At the end of the day, if there’s not enough water, who’s going to win?” she asked.

Continue Reading

Technology

Jio Profit Increases 24 Percent as Reliance Recovers from Pandemic Slowdown

Published

on

By Reuters | Updated: 23 October 2021

India’s Reliance Industries posted a 43 percent surge in second-quarter profit that exceeded market expectations on Friday, as rising demand and higher average selling price for oil products boosted its mainstay oil-to-chemicals business. The Mumbai-based conglomerate’s pandemic-hit energy and retail businesses are seeing a massive rebound with travel back in full swing and shoppers returning to stores as vaccination picks up pace in India.

Revenue from the oil-to-chemicals unit, home to both its refining and petrochemicals operations, rose 58.1 percent, also benefiting from higher transportation fuel margin.

With the lifting of lockdowns, business at its retail division, which consists of more than 12,000 stores and supermarkets, returned to pre-pandemic levels with revenue of 399.26 billion rupees.

“All our businesses reflect growth over pre-COVID levels,” said Chairman and Asia’s richest man Mukesh Ambani in a statement.

Reliance, India’s most valuable company, has in recent years invaded the retail and telecom sectors to tap into India’s consumer boom as it looks to reduce its dependence on its mainstay energy arm.

Reliance’s telecom unit Jio reported a 24 percent rise in profit, with a net addition of 23.8 million subscribers from a year ago.

The company said it would “soon” launch the low-cost smartphone it was developing with Google, after a delay due to an industry-wide chip shortage.

The company said consolidated profit rose to 136.80 billion rupees in the quarter ended September 30, from 95.67 billion rupees a year earlier.

Analysts, on average, had expected a profit of 134.65 billion rupees, according to Refinitiv data.

Overall revenue from operations rose 50 percent to 1.74 trillion rupees from a year earlier.

© Thomson Reuters 2021

Continue Reading

Technology

Lyft Records Over 4,000 Sexual Assault Cases in Long-Overdue Safety Report

Published

on

By Reuters | Updated: 23 October 2021

Lyft received reports of more than 4,000 instances of sexual assault on its ride-hailing platform between 2017 and 2019, it said, detailing the data in a safety report it had promised to publish about two years ago.

The company report, issued late on Thursday, showed sexual assault reports on its platform had increased from around 1,100 in 2017 to some 1,800 in 2019. But it said bookings increased at a higher rate during that time, resulting in a 19 percent drop in the overall incident rate.

Lyft said more than 99 percent of its journeys had occurred without any safety incident.

“While safety incidents on our platform are incredibly rare, we realise that even one is too many. Behind every report is a real person and real experience, and our goal is to make each Lyft ride as safe as we possibly can,” Jennifer Brandenburger, head of policy development and research, said in a company blog post.

The company said it has invested in safety features, employed rigorous driver background checks and consulted sexual assault experts.

Lyft had committed to releasing its report at the end of 2019, when its larger rival Uber Technologies provided the ride-hailing industry’s first detailed safety report.

Uber at the time disclosed it had received some 6,000 reports of sexual assault related to 2.3 billion trips in the United States in 2017 and 2018.

Lyft, which services significantly fewer trips than Uber, did not disclose the total number of rides it completed in its Thursday safety report, but at 0.0002 percent the incident rate was the same as Uber’s.

Unlike Uber, Lyft did not disclose what share of incidents resulted in drivers being harmed. Uber’s report showed riders accounted for roughly half of the accused in sexual assault reports.

© Thomson Reuters 2021

Continue Reading

Science

NASA Artemis Moon Mission Launch Planned for February 2022

Published

on

By Agence France-Presse | Updated: 23 October 2021

NASA said Friday it is now targeting February 2022 for the uncrewed lunar mission Artemis 1, the first step in America’s plan to return humans to the Moon later this decade. The space agency had initially wanted to launch the test flight by the end of this year, with astronauts on the ground by 2024 on Artemis 3, but the timeline has slipped back.

It achieved a major milestone Wednesday when it stacked the Orion crew capsule atop its Space Launch System megarocket, which now stands 322 feet (98 meters) tall inside the Vehicle Assembly Building at NASA Kennedy Space Center in Florida.

After further tests, it will be wheeled out to the launch pad for a final test known as the “wet dress rehearsal” in January, with the first window for launch opening in February, officials told reporters on a call.

“The February launch period opens on the 12th and our last opportunity in February is on the 27th,” said Mike Sarafin, Artemis 1 mission manager.

The next windows are in March and then April.

These potential launch periods are dependent on orbital mechanics and the relative position of the Earth with respect to its natural satellite.

The mission duration is expected to be four to six weeks.

It will also deploy a number of small satellites, known as CubeSats, to perform experiments and technology demonstrations.

Although likely to be pushed back, Artemis 2 is technically scheduled for 2023 and Artemis 3 for 2024, humanity’s return to the Moon for the first time since the Apollo 17 mission in 1972.

NASA says the moonwalkers will include the first woman and first person of colour to make the trip.

The space agency is seeking to establish a sustainable presence on the Moon, and use the lessons it learns to plan a crewed trip to Mars in the 2030s.

Continue Reading

Technology

BMW to Phase Out Combustion Engines From Main Plant by 2024

Published

on

By Reuters | Updated: 23 October 2021

BMW will stop making internal combustion engines at its main plant in Munich by 2024, its head of production said on Friday at a conference marking the start of production of its electric i4 model. The ICE engines currently made in Munich will be produced in BMW’s factories in Austria and the UK in future, production chief Milan Nedeljkovic said, though cars using the engines will still be assembled at the Munich plant.

Still, by 2023 at least half the vehicles produced in Munich would be electrified – either battery electric or plug-in hybrid, the company said.

BMW has set itself a target for at least 50 percent of new global car sales to be electric by 2030, and CEO Oliver Zipse said at a conference last week the company would be ready with an all-electric offering if any market banned ICEs by then.

The i4 battery-electric car was made on a joint assembly line with ICE and hybrid models such as the BMW 3 Series Sedan and Touring, the company said, a shift that cost EUR 200 million ($233 million or Rs. 1,746 crores) of investment in production infrastructure.

A similar mixed assembly line is already under way at the automaker’s Dingolfing plant, which produces the BMW iX alongside hybrid and ICE models.

The new model will be prioritised in decision-making over where to allocate scarce chips, the plant chief Peter Weber said. The company was well-stocked in other raw materials, Nedeljkovic added.

BMW has previously said it expects to produce 70,000 to 90,000 fewer cars than it could have sold this year because of the chip shortage that has plagued automakers worldwide.

It also committed to reducing emissions from transport logistics at the Munich plant, the company’s biggest, to zero in the next few years, without giving a specific date.

This will be achieved by making greater use of rail transport and battery-powered trucks to transport vehicles in and around the plant, it said.

© Thomson Reuters 2021

Continue Reading

Social Networking

Facebook Now Reportedly Accused of Wrongdoing by Another Whistleblower

Published

on

By Agence France-Presse | Updated: 23 October 2021

A former Facebook worker reportedly told US authorities Friday the platform has put profits before stopping problematic content, weeks after another whistleblower helped stoke the firm’s latest crisis with similar claims. The unnamed new whistleblower filed a complaint with US financial regulator Securities and Exchange Commission that could add to the company’s distress, said a Washington Post report.

Facebook has faced a storm of criticism over the past month after former employee Frances Haugen leaked internal studies showing the company knew of potential harm stoked by its sites, prompting US lawmakers’ to renew a push for regulation.

In the SEC complaint, the new whistleblower recounts alleged statements from 2017, when the company was deciding how to handle the controversy related to Russia’s interference in the 2016 US presidential election.

“It will be a flash in the pan. Some legislators will get pissy. And then in a few weeks they will move onto something else. Meanwhile we are printing money in the basement, and we are fine,” Tucker Bounds, a member of Facebook’s communications team, was quoted in the complaint as saying, The Washington Post reported.

The second whistleblower signed the complaint on October 13, a week after Haugen’s scathing testimony before a Senate panel, according to the report.

Haugen told lawmakers that Facebook put profits over safety, which led her to leak reams of internal company studies that underpinned a damning Wall Street Journal series.

The Washington Post reported the new whistleblowers SEC filing claims the social media giant’s managers routinely undermined efforts to combat misinformation and other problematic content for fear of angering then US president Donald Trump or for turning off the users who are key to profits.

Erin McPike, a Facebook spokeswoman, said the article was “beneath the Washington Post, which during the last five years would only report stories after deep reporting with corroborating sources.”

Facebook has faced previous firestorms of controversy, but that has not translated into substantial new US legislation to regulate social media.

Continue Reading

Trending