https://www.asiasentinel.com/econ-business/huawei-meng-wanzhou-hongkong-passports/



Why Did Huawei Exec Meng Have 3 HK Passports?

December 11, 2018

369

By: Our Correspondent


China is squealing like a stuck pig at the arrest of Huawei executive Meng
Wanzhou, but the dangers of escalation are high both for Huawei and –
seldom noticed – Hong Kong.  Meng was arrested in Canada on Dec. 1 and
ordered held at the request of the United States, which has accused Huawei
of helping the Iranian government evade sanctions put in place when the
Trump administration unilaterally voided the Obama-era nuclear disarmament
treaty with Tehran.

To take the issue of the danger to Hong Kong, which has so far been given
scant attention in the west, first: Canadian authorities have found Meng
has been in possession of three Hong Kong passports in addition to mainland
ones.

The first question is whether she was entitled to any Hong Kong passport,
let alone three. She is not thought to have lived in Hong Kong long enough
– seven years — to have acquired the permanent residence which would
entitle her to a Hong Kong Chinese passport.

Two other routes to Hong Kong residence do exist: investment of a
sufficiently large sum in a high-skill employment generating enterprise,
and being viewed as an especially distinguished person, such as a sporting
star. It is not known as yet whether Meng qualified under either category.
Nor is it clear why she had three such passports. Conceivably they could be
old ones containing still valid visas, but the situation demands
clarification from Hong Kong’s Immigration Department.

Although Meng also held mainland passports, the Hong Kong ones would have
given her visa-free access to many countries that demand visas from other
holders of Chinese passports. So whatever the actual circumstances of her
passports, the United States (and others) are likely to see it as a further
blurring of the lines between the mainland and the SAR at a time when Hong
Kong’s government is pushing for closer integration with the mainland and
the so-called Greater Bay Area, an adjoining zone of cities and
municipalities of some 60 million people.

At risk is Hong Kong’s separate treatment not only for trade purposes but
also for access to high technology and other economic benefits of the One
Country-Two Systems principle which is supposed to govern the territory.
Well before Huawei incident there have been voices in the US calling for
re-examination of its relationship with Hong Kong as provided in the 1992
US-Hong Kong Policy Act.  To US unhappiness with suppression of democracy
and dissent in Hong Kong is now being added concern that its separate
status is being cynically used by Beijing for mainland purposes, Although
Huawei claims to be a private company, its links to the highest levels in
Beijing, and the military in particular, are clear enough.

The US move against Meng must be seen as a part of a broader strategy of
clipping the wings of what is probably China’s most important high-tech,
global-reach company. Australia and New Zealand have recently both banned
Huawei from participation in 5G systems and the UK is imposing tight
restraints on the company’s operations there. Others may well follow. –
though developing countries less worried about espionage may prefer
Huawei’s lower cost products.

The US most likely has a strong technical case against Meng. But in most
cases involving breach of US sanctions on Iran, the Justice Department has
targeted companies rather than their executives. Hence huge fines have been
imposed on some foreign banks without individuals being charged with fraud,
as in the Meng case.

China’s noisy reaction attests not just to the importance of Huawei but of
Meng who is not only its finance director but daughter of its founder and
chairman. It contrasts with silence over the arrest and recent conviction
of former Hong Kong Home Affairs minister Patrick Ho for bribing officials
in Africa on behalf of a major mainland state owned enterprise. Ho, who had
been an eager Belt and Road advocate faces a significant jail term.

The Meng arrest will undoubtedly add to the difficulty of sustaining a
truce in the US trade war with China. But it also highlights the anger
which many US trade partners, from Germany to India, regard the US attempt
to make others kowtow to its Iran embargo, a product of four decades of
failure of US policies in the Middle East and of benefit only to Israel,
Saudi Arabia and Russia.

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