This is a huge deal: The CFO of Huawei has been arrested in Canada for extradition to the US.
And she’s not just the CFO (Caixin):
"Meng Wanzhou [is] the daughter of founder Ren Zhengfei." "[She] was taken into custody while transiting at an unspecified airport in Canada, the company said in a statement on its website."
The arrest is related to the breaking of US sanctions on Iran. But Huawei says it doesn’t know what’s going on.
Some context: This comes in the wake of the US case against ZTE for breaking Iran sanctions earlier in the year, which temporarily cut off ZTE from US exports of critical components used in its handsets. Xi Jinping personally asked US President Trump to lift the export restrictions on ZTE, which he did. But there has long been speculation that similar measures might be applied to Huawei at some point
Get smart: The Chinese would consider any US case against Huawei 100 times more important than tariffs on Chinese goods. So this is the critical area to watch to understand the state of US-China relations.
The big picture: Global technology is becoming increasingly balkanized. This will only accelerate that process.