China has 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.
Huawei’s 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 accused of trying to evade U.S. curbs on trade with Iran.
The arrest follows a U.S.-Chinese cease-fire in a tariff war over Beijing’s technology policy.
Asian stock markets tumbled on the news, fearing renewed U.S.-Chinese tensions that threaten global economic growth.
The Chinese Embassy in Ottawa said Meng broke no U.S. or Canadian laws and demanded Canada “immediately correct the mistake” and release her.