Huawei Technologies Co.’s chief financial officer was arrested in Canada over potential violations of U.S. sanctions on Iran, provoking outrage from China and complicating thorny trade negotiations just as they enter a critical juncture.
Wanzhou Meng — also deputy chairwoman and the daughter of Huawei’s founder — faces extradition to the U.S., said Ian McLeod, a Canada Justice Department spokesman, declining to elaborate.
he was arrested Dec. 1 after the U.S. Department of Justice in April opened an investigation into whether the leading telecommunications-equipment maker sold gear to Iran despite sanctions on exports to the region.
News of Meng’s arrest provoked strong protest from the Chinese embassy in Canada, which called it a violation of its citizens’ rights while demanding the U.S. and its neighbor “rectify wrongdoings” and free Meng.
Her arrest is sure to heighten tensions between Washington and Beijing days after the world’s two largest economies agreed on a truce in their growing trade conflict.
Meng’s father Ren Zhengfei, a former army engineer, has won acclaim at home for toppling Apple Inc. in smartphones and turning an electronics reseller into a producer of networking gear with revenue surpassing Boeing Co.
He’s regularly named among China’s top