Stock Selloff Continues Amid Worries Over U.S.-China Tensions

The Chinese Embassy in Canada has issued a statement over the arrest of Meng Wanzhou

The Chinese Embassy in Canada has issued a statement over the arrest of Meng Wanzhou

Though most Chinese people use their fathers' surnames, Ms Meng adopted her mother's family name.

Canadian authorities arrested Meng Wanzhou, the chief financial officer of Chinese telecom giant Huawei.

Chinese officials on Thursday blasted Meng's arrest - but experts warn more forceful actions, including the possibility of tit-for-tat detentions of high-profile citizens, could be coming.

The expectation did not keep the price of oil from falling, however, as investors focused on the potential economic disruption from any escalation in the US-China trade dispute.

The CFO's arrest - the same day Donald Trump and Xi Jinping dined in Buenos Aires -- is likely to be regarded back home as an attack on one of China's foremost corporate champions.

The broad market decline came as the arrest of a senior Chinese technology executive overshadowed some positive comments on trade from Beijing and threatened to worsen trade tensions between the United States and China.

"Detaining a person without providing an explanation has undoubtedly violated her human rights", Geng said, adding the Chinese government "has made clear our solemn positions to the USA and Canada". China, which has spent the week thus far making conciliatory gestures to the U.S.in an attempt to bring the trade war to an end, is furious and is demanding Meng's release.

Analysts have speculated that the executive's arrest was linked to alleged violations of US sanctions on Iran.

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His killing sparked worldwide outrage over the kingdom's heavy-handed tactics and renewed attention to the Saudi-led war in Yemen. The CIA believes a Saudi hit squad killed him there on the crown prince's instructions - one of them reportedly using a bone saw.

But casting Huawei as the Chinese equivalent of Apple understates its reach and importance - Huawei also manufacturers a tremendous amount of the equipment used by phone and internet companies, as well as providing IT consulting services both in China and around the globe. Her stature in Chinese culture has been compared to American tech giants such as Steve Jobs or Mark Zuckerberg.

The arrest is nearly certain to exacerbate tensions between President Donald Trump and President Xi Jinping at a highly sensitive time.

"Washington is attempting to damage Huawei's worldwide reputation and taking aim at the tech giant's global market in the name of law", the editorial stated. "The Chinese government should seriously mull over the US tendency to abuse legal procedures to suppress China's high-tech enterprises". It should increase interaction with the USA and exert pressure when necessary.

Canadian authorities said Wednesday that they have arrested Meng for possible extradition to the United States.

Traders said the development smashed hopes surrounding the trade war ceasefire announced by President Trump after talks with his Chinese counterpart at the weekend.

Earlier this year, six top U.S. intelligence chiefs voiced their concerns about Huawei phones to the Senate Intelligence Committee, with FBI Director Christopher Wray saying he was "deeply concerned about the risks of allowing any company or entity that is beholden to foreign governments that don't share our values to gain positions of power inside our telecommunications networks".

Huawei denies all charges.

Outside of the arrest itself, very little information about the case is being released at this time, in large part because a publication ban that was requested by Meng.

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