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To Get Back Arrested Executive, China Uses a Hardball Tactic: Seizing Foreigners

The speed at which Beijing returned two Canadians held seemingly tit-for-tat in exchange may signal comfort with the tactic.

An Air China jet carrying Meng Wanzhou, the Huawei executive, arrived in Shenzhen, China, on Saturday as part of a deal with Canada and the United States. Credit...Aly Song/Reuters

In a rapid-fire climax to a 1,030-day standoff, China welcomed home a company executive whose arrest in Canada and possible extradition to the United States made her a focus of superpower friction. In getting her back, Beijing brandished a formidable political tool: using detained foreign citizens as bargaining chips in disputes with other countries.

The executive, Meng Wanzhou, landed in China on Saturday night local time to a public that widely sees her as a victim of arrogant American overreach. By the same turn, Michael Spavor and Michael Kovrig, two Canadians detained by Chinese officials just days after Ms. Meng had been arrested, were released and arrived in Canada.

The exchange resolves one of the festering disputes that have brought tensions between Washington and Beijing to their worst point in decades. But it will likely do little to resolve deeper issues including human rights, a sweeping clampdown in Hong Kong, cyberespionage, China’s threats to use force against Taiwan, and fears in Beijing that the United States will never accept China’s rise.

The swiftness of the apparent deal also stands as a warning to leaders in other countries that the Chinese government can be boldly transactional with foreign nationals, said Donald C. Clarke, a law professor specializing in China at George Washington University Law School.

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Detained Huawei Executive Speaks After U.S. Agrees to Her Release

Meng Wanzhou, chief financial officer of Huawei Technologies, spoke outside a courthouse in Vancouver, British Columbia, after the U.S. agreed to allow her to return to China. Within hours, China released two Canadians it had held since shortly after her detainment.

Firstly, I’d like to thank the honorable associate Chief Justice Holmes for her fairness in the whole legal proceedings. I also appreciate the crown for their professionalism and the Canadian government for upholding the rule of law. Over the past three years, my life has been turned upside down. It was a disruptive time for me as a mother, a wife and a company executive. But I believe every cloud has a silver lining.

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Meng Wanzhou, chief financial officer of Huawei Technologies, spoke outside a courthouse in Vancouver, British Columbia, after the U.S. agreed to allow her to return to China. Within hours, China released two Canadians it had held since shortly after her detainment.CreditCredit...Darryl Dyck/The Canadian Press, via Associated Press

“They’re not even making a pretense of a pretense that this was anything but a straight hostage situation,” he said of the two Canadians, who stood trial on spying charges. Mr. Spavor was sentenced last month to 11 years in prison, and Mr. Kovrig was waiting for a verdict in his case after trial in March.

“In a sense, China has strengthened its bargaining position in future negotiations like this,” Professor Clarke said. “They’re saying, if you give them what they want, they will deliver as agreed.”

Chinese media reports chronicled her release and flight home, skipping over her admission of some wrongdoing or saying that it did not amount to a formal guilty plea. On China’s internet, Ms. Meng was praised as a patriotic symbol of China standing up to Western bullying. Her plane was met on the tarmac at the airport in Shenzhen, China, by a rapturous crowd waving Chinese flags.

“Without a powerful motherland, I would not have my freedom today,” Ms. Meng said in a statement issued from her flight.

Chinese news media scarcely mentioned the release of Mr. Spavor and Mr. Kovrig, leaving the impression that Beijing gave nothing away for her return.

To say that the apparent swap signals a thaw in relations would be premature at best, experts said.

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The Canadian ex-diplomat Michael Kovrig arrived at Pearson International Airport in Toronto on Saturday, after he and his countryman Michael Spavor were released by China.Credit...Chris Helgren/Reuters

President Biden has designated China as a key challenge to American pre-eminence. The releases came as he hosted the first face-to-face leaders’ meeting of the Quad, a grouping of the United States, India, Japan and Australia, united by their apprehension about China’s power and intentions in Asia. This month, Mr. Biden unveiled a new security agreement with Australia and Britain, and plans to provide nuclear-powered submarines to Australia.

While Canadian officials and American prosecutors have insisted that they treated Ms. Meng’s case as purely a legal matter, politics has lurked in the background since she was arrested at an airport in Vancouver on Dec. 1, 2018.

Nine days later, security officers took Mr. Kovrig, a former Canadian diplomat, from a street in Beijing. Mr. Spavor was seized on the same day in Dandong, a Chinese city opposite North Korea, a country where he long did business. While Ms. Meng was allowed to live in her Vancouver mansion, the two Canadians were confined to prison under much harsher conditions.

Chinese officials rejected the idea that Mr. Kovrig and Mr. Spavor were in effect hostages. But Canadians, including Prime Minister Justin Trudeau, scoffed at their denials, and Chinese officials and media commentators occasionally implied that there could be a trade-off in return for Ms. Meng’s release.

The United States alleged that in 2013 Ms. Meng lied to a bank over whether Huawei — the telecommunications company founded by her father, Ren Zhengfei, and where she was chief financial officer — had kept control of a company that did business in Iran in violation of American sanctions. Ms. Meng’s lawyers argued that she had been truthful.

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President Biden hosted the leaders of India, Japan and Australia on Friday. The so-called Quad is a counter to China’s influence in Asia.Credit...Sarahbeth Maney/The New York Times

Despite posturing on both sides, the United States and Ms. Meng had some incentive to find common ground in part because neither felt entirely sure they would win the fight over extraditing her, according to two additional people with knowledge of the talks.

Her attorneys argued that the case against her entailed an abuse of process, notably President Donald J. Trump’s comment that he could intervene to secure a trade deal with Beijing.

“Trump made matters worse on several occasions by implying that Huawei could be simply another U.S. bargaining chip in the trade negotiations,” John Bolton, who had served as Mr. Trump’s national security adviser, wrote in his memoir.

While the Canadian courts heard arguments, there were hints that Washington and Beijing were trying to find common ground. Negotiations between Ms. Meng’s team and the Justice Department began more than a year ago, said one person familiar with the talks.

At the State Department, the two Canadians appeared to be a priority among human rights cases. When Wendy R. Sherman, the deputy secretary of state, attended talks in China in July, she “raised the cases of American and Canadian citizens,” the department said at the time.

Last week, President Biden held a telephone conversation with China’s leader, Xi Jinping. Neither side gave details, but Mr. Xi’s public comments suggested that he wanted to decrease tensions. The two sides, Mr. Xi said according to China’s official summary, should “bring China-U.S. relations back to the right track of stable development as soon as possible.”

Public resolution, though, may have been slowed by Canada’s recent election. The prime minister, Mr. Trudeau, reclaimed office in the election last week, though he failed to win a commanding majority in Parliament.

The Chinese government’s hardball tactics may have been successful in springing Ms. Meng, but they appear to have created lasting odium in Canada, showing the political costs of seizing foreign nationals. More than 70 percent of Canadian respondents to a Pew Research Center poll this year had an unfavorable view of China. Resistance to purchasing Huawei equipment there has grown.

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Supporters waited for the arrival of Ms. Meng at the airport on Saturday.Credit...Noel Celis/Agence France-Presse — Getty Images

But under Mr. Xi, Chinese officials have become bolder in rejecting Western criticism. They have said that Ms. Meng’s arrest was rankly political and appeared willing to go to great lengths to ensure that she did not face trial in the United States.

“This was the political persecution of a Chinese citizen with the goal of crushing a Chinese high-tech enterprise,” a spokeswoman for the Chinese foreign ministry, Hua Chunying, said in a statement about Ms. Meng on Saturday. “The actions by the United States and Canada were classic arbitrary detention.”

John Kamm, an American businessman who for decades has negotiated with Chinese officials, said that Beijing may also release American nationals held in China as part of the diplomatic give and take. Some are in detention, others under exit bans that block them from leaving China.

“I think now we can hope that there’ll be other shoes dropping — movement on other cases,” Mr. Kamm said by telephone.

Ms. Meng received a hero’s welcome upon her return, but before she can move around she will have to first undergo three weeks of quarantine under China’s stringent rules for Covid-19. While in Canada, she stayed in her seven-room gated house in Vancouver and could move around with a tracker device on her left ankle.

Mr. Kovrig and Mr. Spavor landed Saturday morning at Calgary International Airport, where Mr. Trudeau and his foreign minister, Marc Garneau, greeted them. The two Michaels will face a glare of attention, and then the hardships of adjusting after years in detention with little human contact.

“Having your movement restricted is still a deprivation of freedom, but the difference between what Meng has experienced and what they went through is night and day,” said Margaret Lewis, a professor at Seton Hall Law School who studies criminal justice in China. “The worst of their ordeal is over, but their wounds will continue.”

Ian Austen contributed reporting from Ottawa and Dan Bilefsky contributed from Montreal. Claire Fu contributed research.

Chris Buckley is chief China correspondent and has lived in China for most of the past 30 years after growing up in Sydney, Australia. Before joining The Times in 2012, he was a correspondent in Beijing for Reuters. More about Chris Buckley

Katie Benner covers the Justice Department. She was part of a team that won a Pulitzer Prize in 2018 for public service for reporting on workplace sexual harassment issues. More about Katie Benner

A version of this article appears in print on  , Section A, Page 6 of the New York edition with the headline: Arrested Executive Returned to China in Exchange for Seized Canadians. Order Reprints | Today’s Paper | Subscribe

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