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US said to be in talks to resolve charges against Huawei's CFO

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The US Justice Department (DOJ) is in talks about a possible resolution in the legal case against the chief financial officer (CFO) of Huawei Technologies, according to a person familiar with the matter, a simmering dispute that has fuelled a clash between the world's two biggest economies.

[NEW YORK] The US Justice Department (DOJ) is in talks about a possible resolution in the legal case against the chief financial officer (CFO) of Huawei Technologies, according to a person familiar with the matter, a simmering dispute that has fuelled a clash between the world's two biggest economies.

No deal or terms have been reached in the discussion about the fate of Meng Wanzhou, said the person, asking not to be identified because the matter is private.

Justice officials and lawyers have discussed the prospect of a deferred prosecution agreement related to wire and bank fraud charges, which would allow Meng to return home to China from Canada in exchange for admitting wrongdoing in the criminal case, Dow Jones reported earlier, citing people familiar with the matter. She was arrested two years ago in Vancouver and has been confined to the city since then.

The Trump administration's moves against Huawei - particularly the arrest of Meng, the daughter of founder Ren Zhengfei - have added to the rising tensions between the US and China.

In addition to the legal case, the US government has pressed allies to bar their telecom carriers from using the company's networking equipment because of alleged security risks.

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Meng has so far resisted the proposal because she believes she has done nothing wrong, Dow Jones reported. The US claims Meng tricked HSBC Holdings into processing Iran-linked transactions that put the bank at risk of violating American sanctions.

A DOJ spokesperson and Huawei representatives declined to comment. Meng's lawyers didn't immediately respond to requests from Bloomberg News. A spokesperson for Canada's Justice Minister David Lametti said, "As the matter remains before the courts, it would be inappropriate to comment further."

An agreement about the Huawei CFO could remove an issue that has damaged the China-Canada relationship and pave the way for the return of two Canadians who were detained in China after Meng's arrest, Dow Jones said.

Negotiators for Meng and the Justice Department will speak again this week in hopes of reaching a deal before Donald Trump leaves office, the news service reported. Huawei officials are also holding out hope that Joe Biden's administration will be more lenient, the report said.

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