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Huawei executive arrested by Canadian officials at USA request

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Huawei executive arrested by Canadian officials at USA request

Security concerns have hampered Huawei's business in the U.S.as acquisitions were rejected and companies warned not to source network equipment from Huawei or ZTE.

Wang Heng, a China business law professor at the University of New South Wales in Australia, said the U.S. could use Meng's case to exert pressure on China during the trade negotiations.

In a statement posted online Wednesday, the embassy says Wanzhou Meng hasn't violated any USA or Canadian laws, and called the arrest a serious violation of human rights.

The arrest occurred on the same day that US President Donald Trump and Xi struck the trade war truce at a summit in Argentina.

In April, China appealed to the U.S.to avoid damaging business confidence after The Wall Street Journal reported Washington was investigating whether Huawei had violated sanctions on Iran.

Meanwhile, Ms Meng's arrest comes at a sensitive time for US-China relations.

Huawei released a statement saying its CFO was arrested while changing planes in Vancouver and is facing charges in "the Eastern District of NY".

The company's website also lists Meng as its deputy chairwoman and The Associated Press reports that she is the daughter of company founder Ren Zhengfei.

The U.S.is seeking the extradition of Wanzhou Meng, chief financial officer of Huawei Technologies Co., after convincing Canada to arrest her on December 1, likely in connection with violating sanctions against Iran.

"The timing of the arrest is key here".

Chinese foreign ministry spokesman Geng Shuang told a daily briefing on Thursday that China had asked Canada and the United States for an explanation of Meng's arrest, but they have "not provided any clarification".

"Americans are grateful that our Canadian partners have arrested the chief financial officer", he said.

Huawei added that it was "not aware of any wrongdoing by Ms. Meng".

In a statement, it said it had complied with "all applicable laws and regulations where it operates, including applicable export control and sanction laws and regulations of the UN, US and EU".

"Markets are anxious by numerous things: global economic growth, rising interest rates and the US-China trade war".

The Wall Street Journal reported last month that USA officials had briefed counterparts in countries including Germany, Japan and Italy on potential security risks from Huawei equipment.

It said that Canada, at the request of the United States, had arrested a Chinese citizen "not violating any American or Canadian law". But ZTE (ZTCOF), a Chinese tech firm that was temporarily crippled by a U.S. export ban earlier this year, slumped almost 9%. -Chinese cease-fire in a tariff war over Beijing's technology policy.

Huawei, the world's biggest network equipment maker ahead of Ericsson and Nokia, has said Beijing has no influence over its operations.

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.

China urged Canada and the U.S. to "clarify" the reason for Meng's arrest and demanded her release. The top-line stat you'll read about Huawei (pronounced "wah-way") is that it recently surpassed Apple to become the number-two manufacturer of mobile phones in the world, second only to Samsung.

Oil stocks .SXEP fell more than 2 percent as crude oil prices fell on fears that a meeting by producer group OPEC on Thursday would not cut production enough to ease a supply glut. Huawei has denied the links.

US Senator Ben Sasse praised the move and said that it was "for breaking US sanctions against Iran".

The tensions between the United States and Huawei started a few months ago due to allegations of spying by the Chinese government using Huawei's equipment.

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