Huawei CFO Arrested in Canada, China Outraged

Huawei Technologies Co.’s CFO was arrested in Canada over potential violations of U.S. sanctions on Iran, provoking outrage from China and complicating the already thorny trade negotiations at this moment.

According to Ian McLeod, a Canada Justice Department spokesman, Wanzhou Meng, who is also deputy chairwoman and the daughter of Huawei’s founder faces extradition to the U.S..

She was arrested Dec. 1 after the U.S. Department of Justice in April opened an investigation into whether Huawei sold gear to Iran despite sanctions on exports to the region.

The Chinese embassy in Canada strongly protested against Meng’s arrest, calling it a violation of its citizens’ rights while demanding the release of Meng. Her arrest came days after U.S. and China agreed on a truce in their growing trade conflict.

The CFO’s arrest happened on the same day Donald Trump and Xi Jinping dined in Buenos Aires. And this will likely be regarded in back as an attack on one of China’s foremost corporate champions.

Meanwhile, U.S. equity futures and Asian stocks declined as the arrest re-ignited concerns about U.S.-Chinese tensions.

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