Her arrest is likely to heighten tensions between Washington and Beijing days after the world's two largest economies agreed on a truce in their growing trade conflict. Meng was detained in Vancouver but is facing potential extradition to the USA, which had earlier opened an investigation into whether Huawei sold equipment to Iran despite sanctions on exporting there.
Meng's arrest comes as Ottawa and Beijing have been engaged in exploratory talks on a free trade agreement for the past two years, which would be the first deal of its kind between China and a western country. "The Chinese government should seriously mull over the USA tendency to abuse legal procedures to suppress China's high-tech enterprises".
Meng was changing flights in Canada when she was detained "on behalf of the United States of America" to face unspecified charges in NY, according to a Huaweistatement.
The SCMP obtained a transcript of an internal question-and-answer between Meng and her father, Huawei's founder Ren Zhengfei.
"If a couple of Canadian nationals are arrested somewhere as a bargaining chip, it may not be surprising", he said.
Huawei said it had "little information" on the charges but was "not aware of any wrongdoing" by Ms Meng. "Huawei complies with all applicable laws and regulations where it operates, including applicable export control and sanction laws and regulations of the UN, US and European Union". US markets were closed on Wednesday in honor of President George H.W. Bush's funeral.
The Wall Street Journalreported last month that United States officials had briefed counterparts in countries including Germany, Japan and Italy on potential security risks from Huawei equipment.
The probe of Huawei is similar to one that threatened the survival of China's ZTE Corp, which pleaded guilty in 2017 to violating USA laws that restrict the sale of American-made technology to Iran.
Huawei itself has been increasingly on the rocks with the USA for the past year. President Trump has agreed to postpone planned tariff hikes on Chinese goods, while China has pledged to purchase a "very substantial" amount of American produce and curb the export of deadly opioid Fentanyl to the United States in exchange.
Huawei, now China's largest technology company by employees, with more than 180,000 staff and revenue of $93 billion in 2017, started off selling digital telephone switches in the 1990s.
Beijing has called for Meng's release, and the Chinese embassy in canada said that her arrest "seriously harmed the human rights of the victim".
David Mulroney, a former Canadian ambassador to China, says that while he doesn't want to overstate the possibility of a Canadian being jailed, China will be looking for ways to strike back.
Markets had initially brightened after US and Chinese leaders agreed a temporary trade truce at a meeting on Saturday. Three months later, the company eventually reached a deal with U.S. authorities by paying $1.4 billion in fines, as well as agreeing to overhaul its senior management.
United States media have also reported that Huawei is under investigation for potential violations of USA sanctions against Iran. -China relations. As of this morning, that relationship appears very, very rocky.