Huawei’s CFO Wanzhou Meng has been arrested on suspicion of violating sanctions against Iran. Chinese authorities are furious over the arrest, which could lead to further tensions between the United States and China.

The financial director of China’s Huawei, Wanzhou Meng, has been arrested in Canada and could be extradited to the United States.

A spokesperson for the Canadian Department of Justice confirms that Wanzhou Meng was arrested on orders from American authorities.

Due to the ban on publishing information about the case, no one has yet confirmed what she is suspected of.

Sources inform several international media outlets that US authorities suspect Meng of violating US trade sanctions against Iran.

According to the spokesperson, a “bail hearing,” during which the court will decide whether she can be released on bail, is scheduled for Friday.

In addition to CFO, Meng is also vice chair of Huawei’s board of directors and the daughter of the company’s founder, Ren Zhengfei.

U.S. authorities have been investigating whether Huawei violated U.S. trade rules since at least 2016, according to the report. The Globe and Mail.

Authorities looked into whether the company had transported products from the United States to Iran and other countries subject to U.S. export and sanctions laws.

Earlier this year, the Wall Street Journal wrote that Huawei was under investigation for selling equipment from US computer company Hewlett-Packard to Iran.

China rages

In a statement published on its website, the Chinese embassy in Canada criticizes the United States and Canada for this arrest.

– Canadian police have, at the request of the United States, arrested a Chinese citizen who has not violated any American or Canadian law, writes the embassy spokesperson in the press release.

– China firmly opposes this act which violates the human rights of the victim, continues the embassy.

At the same time, the embassy demands the immediate release of the financial director. They also emphasize that they will closely monitor developments in the case to ensure Meng’s rights.

Huawei: I’m not aware anything bad happened

The mobile company writes in a statement that it does not know that the financial director did anything wrong, writes NTB.

– She was temporarily arrested during a layover and faces an unspecified charge in New York. Huawei is confident that legal protection in Canada and the United States will ultimately achieve a correct result, the company writes.

They further claim to have received very little information about this case.

At the same time, Huawei says it complies with all applicable laws in the countries where it operates, including export controls and UN, US and EU sanctions and regulations.

– An aggressive gesture

Unlike companies such as Tencent and Alibaba, Huawei has a large international presence. The company operates in China, Europe and America. Analyst Niel Campling at Mirabaud Securities says the company has grown into a huge global enterprise.

– 5G standards are at the center of the broader intellectual property debate and that’s why the United States and its allies are now doing what they can to sever ties with Chinese IP technology, Campling told Bloomberg.

Michael Every, financial director of Rabobank in Asia, believes that this arrest constitutes an aggressive measure on the part of the American authorities.

– China is already asking for his release, which is expected. If the suspicions are serious, you shouldn’t expect the United States to close the case, Every tells Bloomberg.