Explained: Why China released Canadian detainees shortly after Huawei CFO sacked

US Secretary of State Antony J. Blinken said in a statement: “The US government stands with the international community in welcoming the decision of the authorities of the People’s Republic of China to release Canadian citizens Michael Spavor and Michael Kovrig after more than two and a half years of arbitrary detention. We are happy that they are returning home to Canada.

Who is Meng Wanzhou?

Meng Wanzhou, 49, chief financial officer of Huawei Technologies, was arrested on December 1, 2018 at Vancouver International Airport by Canadian authorities on instructions from the United States. Wanzhou, daughter of the founder of Huawei Technologies, a Chinese technology company, joined Huawei in 1993. She had been fighting extradition to the United States since her arrest in 2018.

Wanzhou was charged with bank fraud and wire fraud for allegedly misleading HSBC bank in 2013 about Huawei’s business dealings in Iran, according to Reuters. Huawei allegedly defrauded financial institutions to authorize transactions and provide financial assistance to Huawei’s sister company Skycom, based in Iran, which was against US sanctions imposed on Iran.

Wanzhou was arrested shortly after US President Donald Trump and Chinese President Xi Jinping signed a 90-day truce trade agreement. According to claims by US officials, Wanzhou had helped Huawei profit from US sanctions imposed on Iran. The Trump administration had also accused Huawei of stealing data and technology from Western companies.

Wanzhou entered into a Deferred Prosecution Agreement (DPA) and was “charged with conspiracy to commit bank fraud and conspiracy to commit wire fraud, bank fraud and wire fraud,” according to a statement released by the United Nations Department of Justice. By entering into a DPA, Wanzhou took responsibility for playing a leading role in a scheme to defraud HSBC bank.

Canadian Prime Minister Justin Trudeau kisses Michael Kovrig after Kovrig and Michael Spavor, (not pictured) in Calgary. (PA)

Why were Canadians Michael Kovrig and Michael Spavor detained by China?

Michael Kovrig and Michael Spavor were arrested nine days after the arrest of Huawei CFO Meng Wanzhou. While many linked the arrests to Wanzhou’s arrest, the Chinese government has repeatedly denied the charges.

The Chinese government has charged the two detainees – known as the two Michaels – with crimes against national security.

Michael Kovrig was a former Canadian diplomat in Beijing. He started working as an advisor for North East Asia to a non-governmental organization, International Crisis Group. The organization works to defuse international conflicts. According to the International Crisis Group website, “Michael has researched and provided analysis on foreign affairs and global security issues in Northeast Asia, particularly China, Japan and the Korean Peninsula.” .

The Chinese government had said that Kovrig’s arrest was also linked to an administrative matter relating to the Crisis Group recording, according to the New York Times.

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Michael Spavor, an entrepreneur, ran a cultural organization that promoted travel to North Korea. Spavor was known to travel to North Korea often and has been charged with crimes against national security, as has Kovrig.

Meng Wanzhou, Chief Financial Officer of Huawei (AP)

The Chinese government has maintained its opacity on the arrest of the two Canadians.

Last month, Spavor was sentenced to 11 years in prison by a Chinese court for espionage.

Why has China detained Canadians Michael Kovrig and Michael Spavor?

Although the Chinese government has denied accusations of arresting the two Michael’s in retaliation for Wanzhou’s arrest, hours after Canada announced Wanzhou’s release, the Chinese government confirmed the release of the two detainees.

China has provided no reason for the release of the two Canadians.

However, China has often been accused of “hostage diplomacy” – detaining people for diplomatic reasons. Hostage diplomacy about focusing on individuals is “the only way to achieve legislative or diplomatic progress,” according to a study published by Yale Law School.