According to recent reports Meng Wanzhou, the 46-year old successor and chief financial officer of Huawei Technologies Co Ltd were arrested on Dec 1st.
This came as a shocker to the white house as on the same day, Trump met with President Li Jinping and discussed options to detain the tariff proposal for 90 days. According to the statements of the official at the White House, Trump hadn’t the slightest clue that the US had requested the deportation of Wanzhou from Canada.
The reason behind this arrest was the US wanted to investigate the company alleged role in using the Global banking systems to dodge US sanctions against Iran. Now, officials told that since this was done by the Justice Department, the White House had no prior knowledge of this.
Regardless, this action led to tensions worsening in the stock markets that are now even more cautious regarding the trade war.
This action could seriously pose a challenge to the recent treaty made, and if that happens the global economy will suffer consistently.
Now, when the question of Political retaliation came up on Beijing’s part in China, Prime Minister Trudeau decided to step back and let the countries resolve it themselves. Further intrusion by the US can lead to conditions worsening multifold.