Canadian Foreign Minister Chrystia Freeland on Wednesday said that parties seeking extradition of Huawei CFO Meng Wanzhou from Canada should ensure the process is not politicized.</s>VANCOUVER/BEIJING (Reuters) - Canada confirmed on Tuesday that one of its citizens was detained in China but said it saw no explicit connection to the arrest in Vancouver of a top executive at Chinese telecoms giant Huawei Technologies Co.

Confirmation of the detention came soon after the executive, Huawei CFO Meng Wanzhou, returned to a packed Vancouver courtroom for a bail hearing in a case that has angered Beijing. Canadian analysts had predicted China would retaliate after Meng’s arrest last week at the request of U.S. authorities.

Former Canadian diplomat Michael Kovrig, who now works in China for a conflict resolution think tank, was the person detained, two sources said.

Meng, 46, faces U.S. accusations that she misled multinational banks about Huawei’s control of a company operating in Iran, putting the banks at risk of violating U.S. sanctions and incurring severe penalties, court documents said. If extradited to the United States, Meng would face charges of conspiracy to defraud multiple financial institutions, the court heard.

Huawei, which makes smartphones and network equipment, and its lawyers have said the company operates in strict compliance with applicable laws.

Public Safety Minister Ralph Goodale said he was “deeply concerned” about the detention of a Canadian, adding that there was “no explicit indication at this moment” that it was linked to the arrest of Huawei’s CFO.

But Guy Saint-Jacques, Canada’s former ambassador to China, asked by the Canadian Broadcasting Corp whether the Kovrig detention was a coincidence, said: “In China there are no coincidences ... If they want to send you a message they will send you a message.”

Concern was also evidenced in Washington where the U.S. State Department is considering a travel advisory for China to caution U.S. citizens, two sources familiar with the matter said.

Meng’s arrest has roiled markets over fears it will exacerbate U.S.-China tensions in trade negotiations that both sides have agreed must be concluded by March 1.

The arrest came in connection with a U.S. investigation into an alleged scheme to use the global banking system to evade U.S. sanctions against Iran, according to people familiar with the probe.

China has threatened severe consequences unless Canada releases Meng immediately. Canadian Prime Minister Justin Trudeau said the matter is one for the courts to decide.

Canadian businesses operating in China are starting to feel the chill already, and the signing of one major deal has been postponed, a source said.

China’s Foreign Ministry and Ministry of Public Security did not respond immediately to questions regarding Kovrig’s detention sent via fax. Kovrig works for the International Crisis Group, an independent conflict resolution think-tank which said it was seeking his prompt and safe release.

Tuesday is the third day of bail hearings in a British Columbia court, where a judge will weigh final issues in determining whether Meng should be freed on bail while awaiting extradition proceedings.

Speaking at a Beijing forum on Tuesday, the Chinese government’s top diplomat, State Councillor Wang Yi, said the government kept constant watch on the safety of citizens abroad, though he did not specifically mention Meng’s case.

“For any bullying that wantonly violates the legitimate rights and interests of Chinese citizens, China will never sit idly by,” state television quoted him as saying.

The Canadian provincial court judge on Monday rolled the proceedings over to Tuesday because he wanted to hear more about who would take responsibility for Meng’s actions if she were released.

Meng’s lawyer David Martin had offered her husband as surety, but the judge and the public prosecutor questioned whether he could perform this duty as he is not a resident of British Columbia.

Huawei is the world’s largest supplier of telecommunications network equipment and second-biggest maker of smartphones, with revenue of about $92 billion last year. Unlike other big Chinese technology firms, it does much of its business overseas.</s>OTTAWA: Canadian Foreign Minister Chrystia Freeland on Wednesday (Dec 12) warned the United States not to politicize extradition cases, a day after President Donald Trump said he could intervene in the affair of a Chinese executive detained in Canada at Washington's request.

Freeland also told reporters that a second Canadian citizen could be in trouble in China. Authorities in China are already holding former diplomat Michael Kovrig, who was detained on Monday.

China has strongly protested the arrest in Vancouver on Dec 1 of Huawei Technologies Chief Financial Officer Meng Wanzhou. Meng has been accused by US prosecutors of misleading multinational banks about Iran-linked transactions, putting the banks at risk of violating US sanctions. She has said she is innocent.

Trump told Reuters on Tuesday he would intervene in the US Justice Department's case against Meng if it would serve national security interests or help close a trade deal with China.

But the legal process should not be hijacked for political purposes, Freeland said.

"Our extradition partners should not seek to politicize the extradition process or use it for ends other than the pursuit of justice and following the rule of law," Freeland said when asked about Trump's comments.

Others also questioned whether Trump might be misusing the extradition request.

"This is a legal issue and one that appears properly executed but your comments can only diminish an important extradition agreement we have with our next door neighbor," said Bruce Heyman, an ex-U.S. ambassador to Canada who was appointed by President Barack Obama, Trump's predecessor.

Meng was released on bail by a Canadian court on Tuesday.

The United States has not yet made a formal extradition petition. Once it does, if a Canadian judge rules in favor of the request, Canada's justice minister must decide whether to extradite Meng to the United States.

Freeland expressed deep concern over the Kovrig case and said a second unnamed Canadian had made contact with Canadian authorities to say Chinese officials were asking him questions. Canada has not been able to make contact with him since, she added.

Officials said earlier they have no indication from Beijing that Kovrig's detention was tied to Canada's arrest of Meng.

But they have seen an uptick in anti-Canadian sentiment online and in China, an official said, and have communicated concerns about diplomatic staff safety to the Chinese government, which beefed up security in response.

"We have in general informed our personnel in Beijing and in our consulates to take extra precautions," an official said.</s>A former Canadian diplomat has been detained in China, two sources said on Tuesday, just hours before a top executive at Chinese telecoms giant Technologies was set to return to a Vancouver courtroom for a bail hearing that has angered Beijing.

It was not immediately clear if the cases were related, but Canadian analysts had already predicted China would retaliate after the arrest of CFO at the request of US authorities. The former diplomat is Michael Kovrig. He works for the Crisis Group, which said it was seeking his prompt and safe release.

Canadian officials said they were not immediately able to confirm that Kovrig was in detention. China's Foreign Ministry and Ministry of Public Security did not respond immediately to questions faxed about Kovrig's detention.

China has threatened severe consequences unless Canada releases Meng immediately. Canadian Prime Minister Justin Trudeau says the matter is one for the courts to decide.

Tuesday will be the third day of bail hearings in a British Columbia court, where a judge will weigh final issues in determining whether Meng should be freed on bail while awaiting extradition proceedings.

Canadian businesses operating in China are starting to feel the chill and the signing of one major deal has been postponed, a well-placed source said.</s>VANCOUVER/BEIJING (Reuters) - Canada confirmed on Tuesday that one of its citizens was detained in China but said it saw no explicit connection to the arrest in Vancouver of a top executive at Chinese telecoms giant Huawei Technologies Co.

Confirmation of the detention came soon after the executive, Huawei CFO Meng Wanzhou, returned to a packed Vancouver courtroom for a bail hearing in a case that has angered Beijing. Canadian analysts had predicted China would retaliate after Meng’s arrest last week at the request of U.S. authorities.

Former Canadian diplomat Michael Kovrig, who now works in China for a conflict resolution think tank, was the person detained, two sources said.

Meng, 46, faces U.S. accusations that she misled multinational banks about Huawei’s control of a company operating in Iran, putting the banks at risk of violating U.S. sanctions and incurring severe penalties, court documents said. If extradited to the United States, Meng would face charges of conspiracy to defraud multiple financial institutions, the court heard.

Huawei, which makes smartphones and network equipment, and its lawyers have said the company operates in strict compliance with applicable laws.

Public Safety Minister Ralph Goodale said he was “deeply concerned” about the detention of a Canadian, adding that there was “no explicit indication at this moment” that it was linked to the arrest of Huawei’s CFO.

But Guy Saint-Jacques, Canada’s former ambassador to China, asked by the Canadian Broadcasting Corp whether the Kovrig detention was a coincidence, said: “In China there are no coincidences ... If they want to send you a message they will send you a message.”

Concern was also evidenced in Washington where the U.S. State Department is considering a travel advisory for China to caution U.S. citizens, two sources familiar with the matter said.

Meng’s arrest has roiled markets over fears it will exacerbate U.S.-China tensions in trade negotiations that both sides have agreed must be concluded by March 1.

The arrest came in connection with a U.S. investigation into an alleged scheme to use the global banking system to evade U.S. sanctions against Iran, according to people familiar with the probe.

China has threatened severe consequences unless Canada releases Meng immediately. Canadian Prime Minister Justin Trudeau said the matter is one for the courts to decide.

Canadian businesses operating in China are starting to feel the chill already, and the signing of one major deal has been postponed, a source said.

China’s Foreign Ministry and Ministry of Public Security did not respond immediately to questions regarding Kovrig’s detention sent via fax. Kovrig works for the International Crisis Group, an independent conflict resolution think-tank which said it was seeking his prompt and safe release.

Tuesday is the third day of bail hearings in a British Columbia court, where a judge will weigh final issues in determining whether Meng should be freed on bail while awaiting extradition proceedings.

Speaking at a Beijing forum on Tuesday, the Chinese government’s top diplomat, State Councillor Wang Yi, said the government kept constant watch on the safety of citizens abroad, though he did not specifically mention Meng’s case.

“For any bullying that wantonly violates the legitimate rights and interests of Chinese citizens, China will never sit idly by,” state television quoted him as saying.

The Canadian provincial court judge on Monday rolled the proceedings over to Tuesday because he wanted to hear more about who would take responsibility for Meng’s actions if she were released.

Meng’s lawyer David Martin had offered her husband as surety, but the judge and the public prosecutor questioned whether he could perform this duty as he is not a resident of British Columbia.

Huawei is the world’s largest supplier of telecommunications network equipment and second-biggest maker of smartphones, with revenue of about $92 billion last year. Unlike other big Chinese technology firms, it does much of its business overseas.</s>Meng Wanzhou was detained at the request of the U.S. during a layover at the Vancouver airport

In this courtroom sketch, Meng Wanzhou, left, the chief financial officer of Huawei Technologies speaks to her lawyer David Martin during a bail hearing at B.C. Supreme Court in Vancouver, on Monday, December 10, 2018. (Jane Wolsak/The Canadian Press)

President Donald Trump says he would consider intervening in the Justice Department’s case against a top Chinese executive if it would be in the interest of U.S. national security and help forge a trade deal with China.

Trump told Reuters in an interview Tuesday at the White House that if he thinks it would be good for what will “certainly be the largest trade deal ever made” he would intervene if necessary.

A Canadian court granted bail on Tuesday to the top executive of Chinese telecommunications giant Huawei. She was arrested at the United States’ request in a case that has set off a diplomatic furor among the three countries and complicated high-stakes U.S.-China trade talks.

A Canadian judge is setting a string of conditions on a top Chinese executive facing possible extradition to the U.S. while releasing her on $10 million Canadian-dollar bail.

Meng Wanzhou is required her to wear an ankle bracelet, surrender her passports, stay in Vancouver and its suburbs and confine herself to one of her two Vancouver homes from 11 p.m. to 6 a.m.

Justice William Ehrcke of the Supreme Court of British Columbia says he is satisfied Meng, a well-educated businesswomen with letters of reference, does not pose a flight risk.

Meng is the chief financial officer of telecommunications giant Huawei and also the daughter of its founder. She was detained at the request of the U.S. during a layover at the Vancouver airport on Dec. 1 — the same day that Presidents Donald Trump and Xi Jinping of China agreed to a 90-day cease-fire in a trade dispute that threatens to disrupt global commerce.

READ MORE: Canada-China relations turn icy over arrest of Chinese exec

The U.S. has accused Huawei of using a Hong Kong shell company to sell equipment in Iran in violation of U.S. sanctions. It also says that Meng and Huawei misled banks about the company’s business dealings in Iran.

On Monday, China detained a former Canadian diplomat in Beijing in apparent retaliation.

Like us on Facebook and follow us on Twitter.</s>VANCOUVER/BEIJING (Reuters) - Canada confirmed on Tuesday that one of its citizens was detained in China but said it saw no explicit connection to the arrest in Vancouver of a top executive at Chinese telecoms giant Huawei Technologies Co [HWT.UL].

Confirmation of the detention came soon after the executive, Huawei CFO Meng Wanzhou, returned to a packed Vancouver courtroom for a bail hearing in a case that has angered Beijing. Canadian analysts had predicted China would retaliate after Meng’s arrest last week at the request of U.S. authorities.

Meng, 46, faces U.S. accusations that she misled multinational banks about Huawei’s control of a company operating in Iran, putting the banks at risk of violating U.S. sanctions and incurring severe penalties, court documents said.

Saying he was “deeply concerned,” Public Safety Minister Ralph Goodale confirmed that Canada was aware a Canadian citizen was detained in China, but he provided no details on who it was.

Goodale said there was “no explicit indication at this moment” that the Canadian’s detention was linked to the arrest of Huawei’s CFO. Canadian officials have relayed their concerns to Chinese authorities about the detention.

The Canadian foreign ministry issued a statement saying the government “is seized with this case.”

A source directly familiar with the matter said this language was unusual for consular cases and showed a high level of concern.

Former Canadian diplomat Michael Kovrig was the person detained, two sources had said earlier. Kovrig works for the International Crisis Group, an independent conflict resolution think-tank which said it was seeking his prompt and safe release.

China has threatened severe consequences unless Canada releases Meng immediately. Canadian Prime Minister Justin Trudeau says the matter is one for the courts to decide.

China’s Foreign Ministry and Ministry of Public Security did not respond immediately to questions regarding Kovrig’s detention sent via fax.

Tuesday is the third day of bail hearings in a British Columbia court, where a judge will weigh final issues in determining whether Meng should be freed on bail while awaiting extradition proceedings.

Canadian businesses operating in China are starting to feel the chill, and the signing of one major deal has been postponed, a source said.

“The consequences have already begun,” the source said, noting that a Canadian firm had been due to ink a major agreement in the next few weeks.

“The local partner, a Chinese private-sector actor, has told the Canadian partner that now is not a good time to sign,” said the source, who asked to remain anonymous.

Speaking at a Beijing forum on Tuesday, the Chinese government’s top diplomat, State Councillor Wang Yi, said the government kept constant watch on the safety of citizens abroad, though he did not specifically mention Meng’s case.

“For any bullying that wantonly violates the legitimate rights and interests of Chinese citizens, China will never sit idly by,” state television quoted him as saying.

The Canadian provincial court judge on Monday rolled the proceedings over to Tuesday because he wanted to hear more about who would take responsibility for Meng’s actions if she were released.

Meng’s lawyer David Martin had offered her husband as surety, but the judge and the public prosecutor questioned whether he could perform this duty as he is not a resident of British Columbia.

The arrest has roiled markets over fears it will exacerbate tensions between the United States and China in trade negotiations that both sides have agreed must be concluded by March 1.

In June 2014, Chinese businessman Su Bin was picked up on a U.S. warrant in Canada, where he had been attempting to establish residency.

Shortly afterward a Canadian citizen in China was arrested and charged with spying. Kevin Garratt spent two years in detention before being deported.

Huawei is the world’s largest supplier of telecommunications network equipment and second-biggest maker of smartphones, with revenue of about $92 billion last year. Unlike other big Chinese technology firms, it does much of its business overseas.

Huawei and its lawyers have said the company operates in strict compliance with applicable laws.</s>The Chinese executive of Huawei who was arrested in Canada and facing possible extradition to the US has thanked her supporters on social media after being granted bail Tuesday evening.

Meng Wanzhou, 46, wrote on Chinese messaging platform WeChat: 'I am in Vancouver and have returned to be with my family. I am proud of Huawei. I am proud of my motherland. Many thanks to everybody who has cared about me.'

A screen shot of the post is circulating by the Chinese media and is currently trending.

Along with the words, Meng also shared a Huawei advertisement which shows the feet of a ballet dancer and a Chinese slogan reading 'what lied behind greatness is suffering'.

Meanwhile, pictures from Canadian Broadcasting Corporation (CBC) show Meng, the daughter of Chinese billionaire and Huawei founder Ren Zhengfei, leaving the court through a side door at British Columbia Supreme Court in Vancouver at around 8pm local time.

Wearing a maroon down jacket and a hoodie, Meng appeared nearly five hours after the court granted her bail, reported CBC.

Surrounded by security staff, she did not say anything to reporters before being led into a black car to take her back to her home in Vancouver.

A Canadian judge granted bail to the top Chinese executive who was facing possible extradition to the US yesterday.

After three days of hearings, Meng Wanzhou was released on bail of C$10million (US$7.4million) - on the condition she surrender her two passports and agree to wear an ankle bracelet.

She will have to stay in Vancouver and its suburbs and confine herself to one of her two Vancouver homes from 11pm to 6am.

The chief financial officer and vice chairman of telecommunications giant Huawei - the world's second largest smartphone maker - had asked for bail in exchange for putting up her husband, children and C$11million (US$8.23million) in real estate as sureties.

Wanzhou was detained at the request of the US during a layover at the Vancouver airport on December 1 - the same day that Presidents Donald Trump and Xi Jinping of China agreed to a 90-day cease-fire in a trade dispute that threatens to disrupt global commerce.

Justice William Ehrcke granted her bail Tuesday evening, according to the Associated Press.

After the news of the Meng's release broke, President Trump indicated that the move - which is expected to placate angry Chinese officials - could be part of a broader trade deal with China.

When asked if he would intervene with the Justice Department in her case, Trump told Reuters: 'Whatever's good for this country, I would do.

'If I think it's good for what will be certainly the largest trade deal ever made – which is a very important thing – what's good for national security – I would certainly intervene if I thought it was necessary.'

Trump also said the White House has spoken with the Justice Department about the case, as well as Chinese officials.

'They have not called me yet. They are talking to my people. But they have not called me yet,' he said when asked if he has spoken to Chinese President Xi Jinping about the case.

Meng's lawyer said his team worked overnight Monday to make changes to its bail plan to help satisfy concerns that have been raised about her release.

David Martin said the defense contacted four potential sources to offer sureties for Huawei's CFO and prepared affidavits after the judge and a federal prosecutor questioned whether Meng's husband would be a suitable person to ensure she complies with any bail conditions.

Martin said one person who is proposed to offer a financial guarantee is a realtor who met Meng in 2009 and sold two properties to the couple.

The man has pledged his home, valued at C$1.8million (US$1.3million), and said he understands he would lose it if Meng violated the conditions of her release.

Martin also read from the affidavit of another man who said he worked at Huawei in China in the mid-1990s and got to know Meng on a personal level.

He vouched for Meng's character to comply with any conditions imposed by the British Columbia Supreme Court and has pledged C$500,000 (US$373,000) from the equity on his home in Vancouver, which is valued at C$1.4million (US$1million).

Ehrcke questioned whether Liu Xiaozong could provide a surety because he is on a six-month visitor's visa to Canada and the form to provide the financial guarantee says it must be provided by a resident of British Columbia.

A surety is a guarantor responsible for ensuring she meets bail terms and who would legally be liable to pay fines if she did not.

Wanzhou said she has ties to Vancouver going back 15 years. She and her husband Liu own two homes in the city, and she even had a Canadian permanent residency permit that she has since renounced.

Liu, said to be Wanzhou's second husband, used to be Huawei's representative in Mexico, according to a recent column on Shanghai's Jiefang Daily newspaper.

He currently works as the chairman of Depu Education, a private international school in China's Chongqing city, the article claimed.

It is rumored that the school, aimed to recruit children from rich Chinese families, was co-founded by Wanzhou and Xiaozong with an investment of 1 billion yuan (US$145million).

Xiaozong, who was at the hearing, has offered the residences and C$1million (US$747,468) in cash - for a total value of C$15million (US$11million) - as a surety for his wife's release, the court heard.

However a Canadian judge yesterday voiced doubts that Liu could act as his wife Meng's 'surety' - a guarantor responsible for ensuring she meets bail terms and who would legally be liable to pay fines if she did not.

The issue of the surety was central to the postponing of the hearing on Monday - with Ehrcke saying he would not make a decision until both sides addressed 'the necessity and/or strong desirability of a surety being a resident of the province.'

Liu, whose visitor visa expires in February, is a risky surety from the prosecutors point of view because he is not a resident of Canada and therefore may not be present for the extradition proceedings which may last years.

The US wants Meng to face allegations of fraud as it says Huawei used unofficial subsidiary Skycom to do business with Iranian telecommunications companies between 2009 and 2014 in violation of sanctions.

Meng has denied the allegations through her lawyer in court, promising to fight them if she is extradited for face charges in the United States.

The case has fueled US-China trade tensions and roiled financial markets.

The US has accused Huawei of using a Hong Kong shell company to sell equipment to Iran in violation of US sanctions.

It also says Meng and Huawei misled banks about the company's business dealings in Iran.

In response to the bail hearings, China slammed the 'inhumane' treatment of Wanzhou, amid reports of her ill-health. The country's foreign minister on Tuesday also vowed to protect its citizens abroad.

Beijing will 'spare no effort' to protect against 'any bullying that infringes the legitimate rights and interests of Chinese citizens,' Foreign Minister Wang Yi said at a conference in Shanghai.

Wang didn't mention the 46-year-old Huawei executive, but a ministry spokesman, Lu Kang, said Wang was referring to cases of all Chinese abroad, including Meng.

Huawei is the second-largest smartphone creator in the world after South Korean Samsung and ahead of Apple.

Meng is alleged to have conspired in helping Huawei avoid US sanctions on Iran.

Martin has said she should be granted bail before her extradition hearing because of severe hypertension and concerns about her health.

In a 55-page sworn affidavit, Meng said she has been treated in hospital for hypertension since her arrest.

'I continue to feel unwell and I am worried about my health deteriorating while I am incarcerated,' the affidavit read.

Meng also said she had suffered numerous health problems, including surgery for thyroid cancer in 2011.

Chinese Foreign ministry spokesman Lu Kang expressed fury over Wanzhou's treatment, citing China's state-run Global Times newspaper as reporting that 'it seems that the Canadian detention facility is not offering her the necessary health care.'

'We believe this is inhumane and violates her human rights,' Lu said at a regular press briefing.

Canadian Crown prosecutor John Gibb-Carsley has asked for bail to be denied, saying Meng faces serious criminal accusations of fraud and poses a flight risk.

Wanzhou is specifically accused of lying to bankers about Huawei's use of a covert subsidiary to sell to Iran, putting multinational banks at risk of breaching US sanctions, and incurring severe penalties.

'Underneath the core of the fraud, a financial institution in the US is being induced to violate sanctions against Iran,' Gibb-Carsley said.

If convicted, she faces more than 30 years in prison. The extradition process could take months, even years, if appeals are made in the case.

'I wish to remain in Vancouver to contest my extradition and I will contest the allegations at trial in the US if I am ultimately surrendered,' she said.

Martin told the court: 'Given her unique profile as the face of a Chinese corporate national champion, if she were to flee or breach her order in any way in these very unique circumstances, it does not overstate to say she would embarrass China itself.'

He had a tracking bracelet on hand in case she was immediately released.

'Someone here on a visitor's visa is not a resident of B.C. It's as simple as that, isn't it?' Justice Ehrcke asked David Martin in court.

Ehrcke said he was unsure how Xiaozong could serve as his wife's surety if he had no authority order that Liu to remain in Canada.

'It would be a frustrating and unfortunate exercise if I were to make an order and then you find that there is no suitable surety,' Ehrcke said.

'If the conditions can't be fulfilled, she's held in custody so I'm thinking ahead to make sure that you don't find yourself potentially in that situation.'

Meng's arrest has rocked stock markets and inflamed tensions amid a truce in the US-China trade war.

Analysts say the incident - the same day that presidents Donald Trump and Xi Jinping agreed to a 90-day tariffs truce - could be used as a bargaining chip in trade negotiations between the United States and China.</s>President Donald Trump said he would intervene in the case of Huawei Technologies Co. Chief Financial Officer Meng Wanzhou if it would help win a trade deal with China.

“If I think it’s good for what will be certainly the largest trade deal ever made – which is a very important thing – what’s good for national security – I would certainly intervene if I thought it was necessary,” Trump said Tuesday in an Oval Office interview with Reuters.

Meng was arrested earlier this month at the request of U.S. authorities, who are demanding her extradition and allege she conspired to defraud banks to unwittingly violate U.S. sanctions by clearing transactions linked to Iran. On Tuesday, she was granted a $7.5 million bail by a Canadian court, allowing her to return to her Vancouver home as extradition proceedings continue.

Trump also told Reuters the White House has spoken with the Justice Department about the case, along with Chinese officials.

Asked if he has spoken with Chinese President Xi Jinping about the matter, Trump responded, “They have not called me yet. They are talking to my people. But they have not called me yet.”

The arrest has threatened to disrupt U.S.-Chinese relations even as the two nations’ leaders seek to negotiate a trade deal that would scale back a series of tariffs that have been implemented this year. China’s Vice Foreign Minister Le Yucheng summoned U.S. Ambassador to China Terry Branstad to protest the arrest on Sunday.

The minister said U.S. actions have violated the “legitimate rights and interests of Chinese citizens,” according to a posting on the ministry website. DM

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So, if you'd like to help and do something meaningful for yourself and your country, then sign up to become a Maverick Insider. Together we can Defend Truth.</s>Even before the arrest of its CFO last week, pressure from the United States had forced China's Huawei onto the back foot in markets from London to Tokyo.

But the detention of Meng Wanzhou in Canada over US allegations she misled banks about Huawei's control of a firm operating in Iran could encourage more customers to stay away.

"The US messaging is undoubtedly having an influence (in Europe)... if not directly then definitely because it has helped create a hostile environment," a Huawei executive told Reuters, adding that many in Huawei were "shell-shocked" by the arrest of the daughter and heir apparent of founder Ren Zhengfei.

Huawei and its lawyers have said it operates in strict compliance with applicable laws, and is confident that both the Canadian and US legal systems "will reach a just conclusion".

Washington's long campaign to convince the world that Huawei's ties to Beijing make the network equipment it sells to telecoms firms a security risk has already taken its toll.

Meng's arrest has raised concerns that European countries in particular could follow the United States, Australia and New Zealand in restricting Huawei's access to those markets.

Huawei, which has repeatedly denied accusations it facilitates Chinese espionage operations, did not immediately respond to a request for comment.

Of Huawei's 22 commercial contracts for next-generation 5G telecom networks, 14 are in Europe, where nearly every major carrier on the continent is a customer. In Britain alone, Huawei says it has spent GBP 1.3 billion ($1.65 billion) on investment and procurement over the last five years.

Europe, Middle East and Africa was Huawei's biggest region for sales outside China last year, its annual report says, accounting for CNY 164 billion, or 27 percent, of total sales.

Huawei says it employs more than 11,000 people in Europe, including 1,900 in research and development, and spends "billions of euros per year" in procurement from the region.

Until recently its position in Europe seemed secure, with governments resisting US pressure to block Huawei.

But there have been signs of a mood change, with some German government officials arguing that Huawei should be banned, Reuters reported last month. In Britain, a critical government agency report prompted Huawei to announce that it would spend $2 billion (roughly Rs. 14,400 crores) on a security overhaul.

Meanwhile, Japan's top telecom operators, including Softbank Group, are re-evaluating possible use of Huawei equipment for upcoming 5G networks, Kyodo News reported.

Huawei is already trying to assuage European fears, including the spending proposal to Britain's National Cyber Security Council, the company executive said. It has also opened a laboratory to enable source code reviews in Germany and has plans to open another in at least one other European country.

And on Monday, Huawei assured the Danish government's Defence Committee that its equipment was safe amid scrutiny of its role as a supplier to the nation's largest telecom carrier.

Sales ban fears

Risks for customers, as well as for Huawei, are heightened by the possibility that the sanctions investigation in the United States could lead to a ban on the purchase of US components. Such a ban nearly put ZTE Corp out of business before it was lifted.

At a summit for its vendor partners in early November, Huawei published a list of 92 "core suppliers." Of these, 33 were from the United States and include household names like Intel, Qualcomm, and Oracle, as well as lesser-known industry players like Seagate, Marvell, and Wind River.

Although Huawei has its own semiconductor division, making it somewhat less vulnerable than ZTE, even that operation depends on US design software.

"Many of the products sold to Huawei by American suppliers cannot be easily substituted with made-in-China alternatives," Stewart Randall, who tracks China's semiconductor industry at Shanghai-based consultancy Intralink, said.

The possibility of a ban on US companies supplying components and software further raises the risks for carriers relying on Huawei gear.

"In the worst case, if Huawei is found to have been involved, the United States will likely immediately impose an export ban on Huawei, forcing its business to come to a halt," brokerage Jefferies said in a report.
Meng Wanzhou, CFO of Huawei who was arrested in Canada for a extradition request from the United States for alleged US sanction violation against Iran, is granted bail with restrictions by a Canadian judge.