What the Arrest of Huawei's CFO Means for the U.S.-China Trade War

Canada's Department of Justice announced in a Dec. 5 statement that it had arrested Meng Wanzhou, the chief financial officer of Chinese tech company Huawei, in Vancouver on Dec. 1 at the request of the United States. Meng is the daughter of Huawei founder Ren Zhengfei. According to Canadian Justice Department spokesman Ian Mcleod, Meng is facing extradition to the United States on suspicions that she violated U.S. sanctions on Iran. Huawei is the world's second-largest manufacturer of smartphones after Samsung and is arguably China's most important hardware technology company. China will likely perceive Meng's arrest as a U.S. strategy to undercut the company, and the impending investigation -- especially in the likely event that it expands beyond Meng into a broader investigation of Huawei -- is sure to increase tension between Beijing and Washington as the two navigate their trade war over the coming three months....