US in talks with Huawei CFO over deal to resolve criminal charges: WSJ

GUANGZHOU, China – The U.S. government is in talks with Huawei chief financial officer Meng Wanzhou over a deal that could send her back to China from Canada if she admits to being at fault in the case against her, he said. reported the Wall Street Journal, citing people. familiar with the subject.

Meng’s attorneys have spoken with officials from the US Department of Justice in recent weeks about reaching a so-called deferred prosecution agreement, the WSJ said. Further talks are scheduled this week with the aim of reaching a deal before the end of the Trump administration, the report added.

The Justice Department was not immediately available for comment when contacted by CNBC. Huawei declined to comment on the WSJ report.

Meng was arrested in Vancouver, Canada, in December 2018. The United States has charged Meng and Huawei with bank and wire fraud in violation of US sanctions against Iran and requested her extradition.

The United States alleges that Meng lied to major banks, including HSBC, about Huawei’s relationship with a subsidiary in Iran called Skycom in order to obtain banking services. Huawei denies any wrongdoing.

As part of the deal being discussed, the United States would agree to postpone or drop the charges against Meng if she admitted some of the allegations against her, the WSJ said. She could also return to China from Canada, where she is currently on bail in her home.

So far, Meng has resisted the proposed deal because she believes she hasn’t done anything wrong, the report adds.

The arrest of Meng, daughter of Huawei founder Ren Zhengfei, marked a rise in tensions between the United States and China and against one of the latter’s most important tech companies. The United States maintains that Huawei poses a threat to national security and has tried to persuade other countries to block the business of their next-generation 5G mobile networks. Washington has also imposed a number of sanctions on Huawei that have affected its ability to source key components such as chips.

A number of hearings have already taken place this year in connection with Meng’s extradition trial, which is expected to continue for several months. An agreement between Meng and the United States could end it.

Read the full Wall Street Journal report here.