European shares fell on Thursday after the arrest of a top executive at Huawei fed new worries over the Sino-U.S. trade war, hitting export-oriented tech and auto stocks. "The Chinese side firmly opposes and strongly protests over such kind of actions which seriously harmed the human rights of the victim", its statement read.
The arrest comes at a delicate time, as Washington and Beijing are set to negotiate a deal that could diffuse longstanding grievances over trade between the two countries.
Despite being essentially barred from the critical U.S. market, Huawei surpassed Apple to become the world's number two smartphone maker in the second quarter of this year and has market leader Samsung in its sights. The CFO's arrest could be regarded back home as an attack on one of China's foremost corporate champions.
"However, the arrest has the potential to shatter very fragile US - Sino relations which will weigh further on global trade and growth concerns".
Its ambitions range from artificial intelligence and chipmaking to fifth-generation wireless.
The U.S.is anxious about the extent to which Chinese-made equipment is used in the telecommunications sectors of countries that host American military bases.
James Lewis, the director of technology policy at the Center for Strategic and International Studies, told Axios the USA should be prepared for a backlash and warned American tech executives to steer clear of China for now. A spokeswoman for Canadian Prime Minister Justin Trudeau referred questions to the country's justice department.
The U.S. has also banned all governmental agencies from buying or using Huawei phones or equipment.
In a statement, Huawei, the second largest smart-phone seller globally after Samsung, said Ms Meng's extradition was prompted by unspecified charges in the Eastern District of NY when she was transferring flights in Canada.
Canadian authorities arrested the chief financial officer of China's Huawei Technologies on Wednesday for possible extradition to the US.
Huawei said it complies with all laws and rules where it operates, including export controls and sanctions of the United Nations, the US and European Union.
"While Huawei and the Chinese government will say that there's no ties between the two, and they've really repeated that over and over again".
A month later, the Commerce Department banned ZTE, China's second-largest maker of telecommunications equipment, from using components made in the United States. The U.S. has slapped tariffs on billions of dollars in Chinese goods in what the Trump administration says is an effort to crack down on intellectual property theft and unfair trade practices.
Over the summer, Australia barred Huawei from providing 5G technology for wireless networks in the country over espionage fears. Meng...to face unspecified charges in the Eastern District of NY, when she was transferring flights in Canada.
In 2016, the Commerce Department sought information regarding whether Huawei was possibly sending USA technology to Syria and North Korea as well as Iran. Federal authorities said ZTE had violated American sanctions against Iran and North Korea, in a move that caused the Chinese company to cease "major operating activities" for a time.
That view is being advanced by global security analysts and former diplomats, following the arrest on Saturday of Meng Wanzhou.
But after the pair met at the G20 on December 1, conflicting messages from Mr Trump over exactly what had been agreed sent markets sliding.
While still serving as United States attorney general, Jeff Sessions made the administration's position clear in a press conference announcing the China Initiative.