BEIJING (AP) China today demanded Canada release a Huawei Technologies executive who was arrested in a case that adds to technology tensions with Washington and threatens to complicate trade talks.
Huaweis chief financial officer, Meng Wanzhou, faces possible extradition to the United States, according to Canadian authorities. The Globe and Mail newspaper, citing law enforcement sources, said she is suspected of trying to evade U.S. trade curbs on Iran.
The timing is awkward following the announcement of a U.S.-Chinese cease-fire in a tariff war over Beijings technology policy. Meng was detained in Vancouver on Saturday, the day Presidents Donald Trump and Xi Jinping met in Argentina and announced their deal.
Stock markets tumbled on the news, fearing renewed U.S.-Chinese tensions that threaten global economic growth. Hong Kongs Hang Seng lost 2.5 percent and the DAX in Germany sank 1.8 percent.
A Chinese government statement said Meng broke no U.S. or Canadian laws and demanded Canada immediately correct the mistake and release her.
Beijing asked Washington and Ottawa to explain the reason for Mengs arrest, said a foreign ministry spokesman, Geng Shuang. He said arresting her without that violated her human rights.
But the Ministry of Commerce signaled Beijing wants to avoid disrupting progress toward settling a dispute with Washington over technology policy that has led them to raise tariffs on billions of dollars of each others goods.
China is confident they can reach a trade deal during the 90 days that Trump agreed to suspend U.S. tariff hikes, said a ministry spokesman, Gao Feng.
Huawei Technologies Ltd., the biggest global supplier of network gear used by phone and internet companies, has been the target of deepening U.S. security concerns. Under Trump and his predecessor, Barack Obama, Washington has pressured European countries and other allies to limit use of its technology.
The United States sees Huawei and smaller Chinese tech suppliers as possible fronts for spying and as commercial competitors. The Trump administration says they benefit from improper subsidies and market barriers.
Trumps tariff hikes on Chinese imports stemmed from complaints Beijing steals or pressures foreign companies to hand over technology. But American officials also worry more broadly that Chinese plans for state-led creation of Chinese champions in robotics, artificial intelligence and other fields might erode U.S. industrial leadership.
The United States is stepping up containment of China in all respects, said Zhu Feng, an international relations expert at Nanjing University. He said targeting Huawei, one of its most successful companies, will trigger anti-U.S. sentiment.
The incident could turn out to be a breaking point, Zhu said.
Last month, New Zealand blocked a mobile phone company from using Huawei equipment, saying it posed a significant network security risk. The company was banned in August from working on Australias fifth-generation network.
On Wednesday, British phone carrier BT said it was removing Huawei equipment from the core of its mobile phone networks. It said Huawei still is a supplier of other equipment and a valued innovation partner.
The Wall Street Journal reported this year U.S. authorities are investigating whether Huawei violated sanctions on Iran. The Chinese government appealed to Washington to avoid any steps that might damage business confidence.
