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China Threatens Trade Retaliation Against Canada Over Arrest Of Huawei Executive

China’s government is threatening trade retaliation against Canada unless authorities in this country release from custody Meng Wanzhou, Chief Financial Officer of Huawei Technologies, who is wanted in the United States.

Ms. Meng was detained by Canadian law enforcement on December 1 while changing planes in Vancouver. The U.S. wants her extradited and alleges Huawei used a Hong Kong shell company to evade U.S. trade curbs on Iran.

A headline in a Communist Party newspaper over the weekend called Canada's treatment of Ms. Meng "inhumane" and followed a formal protest by the Chinese government to Ottawa. The Chinese government is threatening trade retaliation against both Canada and the United States unless Ms. Wanzhou is immediately released.

Specifically, the Chinese government gave Canadian Ambassador John McCallum a warning over the weekend that Canada would suffer "grave consequences" if Ms. Meng is not released from custody. The Government of British Columbia said in a statement Sunday that it has cancelled a trade mission to China because of Ms. Meng’s detention.

Canadian officials have declined to comment on Chinese threats of retaliation, instead emphasizing the independence of Canada's judiciary along with the importance of Ottawa's relationship with Beijing.

Ms. Meng is the daughter of Huawei's founder. Huawei is the biggest global supplier of network gear for phone and internet companies, but its products have become the target of U.S. security concerns because of its ties to the Chinese government. The U.S. has pressured European countries and other allies to limit use of its technology, warning they could be opening themselves up to surveillance and theft of information.

A hearing on whether to grant Ms. Meng bail is scheduled to take place on Monday in Vancouver.