Some Chinese companies ban iPhones, require Huawei after CFO's arrest: report

Some Chinese companies are banning iPhones and requiring that their employees use Huawei products following the arrest of Huawei's chief financial officer, according to a new Yahoo News report.

Meng Wanzhou, the CFO of Chinese telecom giant Huawei, was arrested by Canadian authorities last Saturday at the request of the U.S. after allegedly violating trade sanctions against Iran. Chinese officials have strongly protested Meng's detention.  


Now, Chinese companies are promoting Huawei and barring Apple, an American company. 

Menpad, an LCD display maker and Huawei supplier, on Monday said it will punish employees who buy iPhones with a fine equivalent to the American smartphone's market price, the South China Morning Post reported. 

It also vowed that the company will no longer buy American products, including office supplies and computers, and will offer a 15 percent subsidy for employees who are buying Huawei phones, according to the Post. 

Chinese research and development company Chengdu RYD Information Technology last week also announced a policy that would provide a 15 percent subsidy for employees purchasing Huawei products for personal use. The policy requires the company to use solely Huawei products and software, Yahoo News reported.

Another development company, Shaanxi Li’An Development Group, reportedly said in a memo that employees could receive a 20 percent subsidy for Huawei products and vowed to only buy Huawei equipment for company upgrades. 

China and the U.S. are continuing to wrangle over Meng's arrest, as Chinese officials demand her return and the U.S. investigates the company's alleged shipments of U.S. goods to Iran.  

Meng's detention at the request of U.S. authorities comes as Washington and Beijing continue to negotiate amid a 90-day trade war truce struck recently between President TrumpDonald John TrumpJulián Castro: It's time for House Democrats to 'do something' about Trump Warren: Congress is 'complicit' with Trump 'by failing to act' Sanders to join teachers, auto workers striking in Midwest MORE and Chinese President Xi Jinping. 

The Trump administration and bipartisan lawmakers have scrutinized Huawei as a possible player in China's theft of intellectual property. 

The Wall Street Journal last month reported the U.S. government has been reaching out to allies to convince them to stop using Huawei products. 

Huawei is the world's No. 2 smartphone manufacturer, after South Korea's Samsung.