Sabrina Meng, Huawei chief financial officer, arrested in Canada at the behest of American authorities is the daughter of the Chinese telecommunications giant’s founder.
She recently emerged as his potential successor.
Ren Zhengfei, a 74-year-old former military engineer founded Huawei more than three decades ago.
The arrest of Meng is reportedly related to the violation of U.S. sanctions and she is facing extradition to the U.S.
The arrest of Huawei’s global chief financial officer in Canada will corrode trade negotiations between Washington and Beijing, risk consultancy Eurasia Group told CNBC on Thursday.
“Beijing is likely to react angrily to this latest arrest of a Chinese citizen in a third country for violating U.S. law,” Eurasia analysts wrote.
Meng, who uses the name Meng Wanzhou, was also previously known as Cathy.
U.S. authorities have been probing Huawei, one of the world’s largest makers of telecommunications network equipment, since at least 2016 for allegedly shipping U.S.-origin products to Iran and other countries in violation of U.S. export and sanctions laws, sources told Reuters in April.
Reuters reported on Thursday that China’s embassy in Canada criticized Canada and the United States on Thursday for wrongfully arresting Meng.
The Embassy of the People’s Republic of China in Canada said that it resolutely opposes Meng’s arrest and demands her immediate release.
“The Canadian police, at the request of the United States, arrested a Chinese citizen who had not violated any U.S. or Canadian law,” the embassy said in a short statement on its website.
“China has already made solemn representations to the United States and Canada, demanding they immediately correct their wrong behaviour and restore Ms Meng Wanzhou’s freedom.”
A court hearing has been set for Friday, a Canadian Justice Department spokesman said.