China urges Canada to release Huawei CFO

London skyline

The FTSE 100 was called 71 points lower

Huawei has been banned from helping build fundamental communications infrastructure in some western countries, including 5G telecom service, over fears that it leaves those countries vulnerable to espionage on behalf of the Chinese government.

Huawei's chief financial officer, Meng Wanzhou, faces possible extradition to the United States.

In London, the stock market plunged by more than three percent.

Growing tensions between the US and China, Russia, and North Korea have caused global concern. "It pulls in: Who is going to be the world leader essentially".

A Huawei spokesperson said Meng faces unspecified charges in the Eastern District of NY. The arrest warrant came from the U.S. and was based on the violation of the trade sanctions against Iran.

Canada's ministry of justice confirmed the date and place of Ms Meng's arrest and added: "She is sought for extradition by the United States, and a bail hearing has been set for Friday".

A source familiar with Justice Department procedures said it is unlikely the US attorneys would have acted without consulting other agencies in pursuing the global arrest.

Benchmark U.S. crude lost $1 to $51.89 a barrel in electronic trading on the New York Mercantile Exchange.

"The other family members are in (the) back office, Sabrina is CFO and sits on the board", someone inside Huawei said.

Beijing asked Washington and Ottawa to explain the reason for Meng's arrest, said a foreign ministry spokesman, Geng Shuang. The Global Times is a state-run newspaper whose views are thought to reflect the ruling communist party in China. Washington has previously raised concerns about the Chinese conglomerate because of its links to Beijing's government.

In addition to Trump's tariffs, the administration is tightening regulations on high-tech exports to China.

Earlier this year, it barred USA companies from exporting to ZTE, effectively shutting down the firm.

"We are closely watching the developments in Asia after reports that Canada has arrested the Huawei CFO facing USA extradition for allegedly violating Iran sanctions".

The SCMP obtained a transcript of an internal question-and-answer between Meng and her father, Huawei's founder Ren Zhengfei. The company has been accused of using its devices to pass on information to the Chinese government, prompting the US Department of Defense to ban their sale on military bases. -China relations, it was not clear if the timing was coincidental. New Zealand and Australia already have, according to news reports.

Why is Huawei a concern to the West?

"You can play hardball with a small country but you can't do it with the USA", he said.

And almost a year ago, AT&T pulled out of a deal to sell Huawei smartphones. Mark Warner, D-Va., and Marco Rubio, R-Fla., wrote in October to Canadian Prime Minister Justin Trudeau.

Who has taken action against telecom giant Huawei and why hasn't Canada? .

In May, the Pentagon said that devices from Huawei and ZTE posed an "unacceptable" security risk. But the company said early this year it had become the 25th largest research and development funder in Canada, thanks to partnerships with local universities.

"So not respecting this particular arrest, but Huawei is one company we've been concerned about", he said.

USA stock and bond trading were closed on Wednesday because of a national day of mourning for President George HW Bush. Beijing must develop innovative technologies to keep its economy growing as its labor force ages and it confronts a huge stockpile of debt.

Huawei is a private company and describes itself as employee-owned.

"I don't see a way out of this", Scissors said.

He points out the arrest comes at a trying time for U.S.

After Dow drops, President Trump seeks to reassure investors on China
Oil prices ease in cautious trading ahead of OPEC meeting