Dow plunges 700 points after arrest of Chinese tech exec

An image of Huawei Chief Financial Officer Meng Wanzhou is displayed at a Huawei store in Beijing on Dec. 6

An image of Huawei Chief Financial Officer Meng Wanzhou is displayed at a Huawei store in Beijing on Dec. 6

Authorities conducted the arrest without political interference, Trudeau said Thursday in his first comments on the arrest of Huawei's Chief Financial Officer Meng Wanzhou, which has further inflamed tensions between the us and China.

But China's government says that she hasn't broken any USA or Canadian laws, and is demanding that Canada "immediately correct the mistake" and release her. "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. He declined to give further details, citing Meng's bail hearing on Friday.

Douglas McNabb, a Houston-based global criminal defence lawyer, said the decision to pursue charges against someone such as Ms. Meng could have been made at senior US government levels, "given the circumstances that she is a Chinese citizen whose father has significant authority in the state".

The company has reportedly been under investigation since 2016 for allegedly shipping products from the U.S.to Iran and other countries in violation of USA export and sanctions laws.

Beijing asked Washington and Ottawa to explain the reason for Meng's arrest, said a Foreign Ministry spokesman, Geng Shuang.

"China has the means, opportunity, and motive to use telecommunications companies for malicious purposes", a government report said.

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

Growing tensions between the USA and China, Russia, and North Korea have caused global concern.

In 2012, the House of Representatives released a report warning Huawei poses a national security threat to the USA, and American companies and its government should avoid doing business with the company.

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.

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Meng's arrest has "potentially huge implications" for the trade war and signals the USA government is willing to get tough on Chinese companies that do business with Iran, according to Michael Every, head of Asia-Pacific research at investment bank Rabobank.

"The company has been provided very little information regarding the charges and is not aware of any wrongdoing by Ms. Meng".

The arrest came the same day as Trump's self-described "extraordinary" meeting with Chinese President Xi Jinping in Argentina, on the sidelines of the Group of 20 summit.

Hu Xijin, editor-in-chief of the Global Times (one of China's most hawkish state-run newspapers), commented on his Twitter account that "The U.S. can't beat Huawei in the market".

Huawei, for its part, has consistently denied accusations of spying, and responded to the arrest of Meng by saying it complies with "all applicable laws and regulations" where it operates. "The potential slowdown in global growth is also something the markets are pricing in".

The U.S. launched a criminal probe into Huawei's dealings in Iran in April. But he called it a judicial matter and said politics had nothing to do it.

Traders said the development smashed hopes surrounding the trade war ceasefire announced by President Trump after talks with his Chinese counterpart at the weekend. It surpassed Apple in smartphone sales in the second quarter of this year, leaving it behind only market leader Samsung.

Analysts have warned that the arrest of Huawei's Chief Financial Officer Meng Wanzhou may have major repercussions for American tech companies.

Others say Canada needs to stand firm in the face of Chinese pressure. Reuters published an investigation nearly six years ago about her and Huawei's ties to a company call Skycom that tried to sell Hewlett-Packard computer equipment to an Iranian mobile-phone operator, in contravention of those sanctions.

Huawei's biggest Chinese rival, ZTE Corp., was almost driven out of business this year when Washington barred it from buying US technology over exports to North Korea and Iran.

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