Aruna Viswanatha, Dan Strumpf, Jacquie McNish
The U.S. Justice Department has reached a deal that will allow Huawei Technologies Co. finance chief Meng Wanzhou to return to her home in China nearly three years after she was detained in Canada on behalf of the U.S. , people familiar with the matter said Friday.
The agreement, which is expected to be entered in a New York court later Friday, will require Ms. Meng to admit to some wrongdoing in exchange for prosecutors deferring and later dropping wire and bank fraud charges, the people said. She is scheduled to appear in federal court in Brooklyn Friday afternoon remotely from Canada.
Representatives for Huawei and the Justice Department declined to comment.
The expected deal resolves one source of tension between the U.S. and China as relations between the two countries have deteriorated, particularly after the U.S., U.K. and Australia announced an effort this month to provide Australia with nuclear submarines to counter China’s influence in the Indo-Pacific region .
Caught in the middle of the two superpowers is Canada, which has seen its trade with China plunge and two of its citizens detained in China within days of Ms. Meng’s 2018 arrest. A deal with Ms. Meng could lead to the release of businessman Michael Spavor and Michael Kovrig, a Canadian diplomat on leave, who have been confined to separate Chinese facilities and prisons since December 2018.