2nd Canadian to go on trial in China on spying charges

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How major US stock indexes fared Tuesday

BEIJING (AP) — A Beijing court was is expected to put on trial Monday a second Canadian citizen held for more than two years on spying charges in apparent retaliation for Canada’s arrest of a senior executive of the telecoms giant Huawei.

The trial Monday of analyst and former diplomat Michael Kovrig in Beijing follows an initial hearing in the case of entrepreneur Michael Spavor in the northeastern city of Dandong on Friday.

Canadian diplomats were refused access to Spavor’s trial and have been told both hearings would be held behind closed doors. Diplomats and journalists have showed up nonetheless to seek information and show support.

The government has provided almost no information about the accusations against the two, but a newspaper run by the ruling Communist Party alleges they collaborated in stealing state secrets and sending them abroad. No verdict has been announced in Spavor’s case and it wasn’t clear how long either trial would last and when their outcomes would become known.

However, such cases are almost always predetermined in China, and Beijing is seen as using Kovrig and Spavor as leverage to obtain the release of Huawei executive Meng Wanzhou, who was arrested at the request of the U.S. at the airport in Vancouver, British Columbia, in December 2019. The two Canadians were detained in China just days later.

Meng is sought by the U.S. on fraud charges related to the telecom giant’s dealings with Iran, which is under American financial sanctions.

The two Canadians have been held ever since, while Meng has been released on bail. They were charged in June 2020 under China’s broadly defined national security laws.

Canadian Prime Minister Justin Trudeau blasted Beijing for holding the trial “in secret” without access for consular officials.

“Their arbitrary detention is completely unacceptable, as is the lack of transparency around these court proceedings,” Trudeau said in Ottawa.

“China needs to understand that it is not just about two Canadians. It’s about respect for the rule of law and relationships with a broad range of Western countries that are at play with the arbitrary detention and the coercive diplomacy that they’ve engaged in.”

Meng’s case has deeply angered China’s government, which has promoted Huawei as a global leader in mobile communications technology. Beijing has demanded her immediate and unconditional release and has also restricted various Canadian exports, including canola oil seed, and handed death sentences to another four Canadians convicted of drug smuggling.

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Associated Press writers Rob Gillies in Toronto and Jim Morris in Vancouver, British Columbia, contributed to this report.

7 Semiconductor Stocks Set to Gain From the Chip Shortage

Who knew that something so tiny could create such a big problem? However, that’s the case with the semiconductor industry. Chip manufacturers are facing supply chain disruptions due to the Covid-19 pandemic.

Semiconductors are in high demand for the big tech companies who need the chips to power the servers for their data centers. But they are also needed for much of the technology we take for granted including laptops, tablets, mobile phones, gaming consoles, and automobiles – a sector that seems to be at the root of the current crisis.

Any weekend mechanic knows that even traditional internal combustion cars are heavily reliant on electronics. In fact, electronic parts and components account for 40% of a new, internal combustion vehicle. That’s more than doubled since 2000.

However as it turns out, some manufacturers may have overestimated how soon consumers would be ready for an “all-electric” future. And that meant that they didn’t forecast how much demand there would be for the kind of chips needed to do the mundane, but vital tasks of steering, braking, and even powering windows up and down.

Part of the problem is that U.S. businesses are heavily reliant on countries like China and Taiwan for their semiconductors. In fact, only about 12.5% of semiconductor manufacturing is done in the United States.

Of course, this creates a tremendous opportunity for the companies that manufacture these chips. And it comes at a good time. The semiconductor sector is notoriously cyclical and was coming down from the elevated demand for the 5G buildout.

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View the “7 Semiconductor Stocks Set to Gain From the Chip Shortage”.