Trade war tensions between the United States and China are now at an all-time high with the arrest and detention of Huawei’s CFO, Meng Wanzhou.
However, White House Economic Advisor Larry Kudlow insists that President Donald Trump was not aware of the move against Meng as he was negotiating a trade war truce with Chinese President Xi Jinping in Venezuela at the recent G-20 Summit.
Why Meng Was Arrested
Meng is being held in Canada for violating sanctions put on Iran by the United States.
She has been in Canada since Dec. 1 awaiting extradition.
Canadian prosecutors have said that she was integral in helping Huawei, a major manufacturer of smartphones, dodge Iranian sanctions.
To add even more tension the situation, Meng also happens to be the daughter of the founder of the company.
Meng first appeared in court on Friday, but the judge has delayed the decision on whether she should be freed on bail.
Meng’s legal team has cited medical issues as part of her defense as to why she should be released.
Reportedly, after she was arrested, she was taken to the hospital to be treated for hypertension. Her attorney argued that this, in addition to her ties in Canada, does not make her a threat to flee to back to China.
The case is expected to resume on Monday with a decision by the judge.
The initial warrant for her arrest was issued and signed in late August, which led many pundits to believe that Trump knew about this and was not negotiating with China in good faith at the summit.
The Trump administration, however, has been adamant that the president was not made aware of the warrant and that it had no impact whatsoever in his stance with China.
Meanwhile, the market on Friday reflected the concern investors have on how this will impact the future of trade between the United States and China.
As the Asian markets opened on Monday morning, that plunge continued, as it did for futures here in the United States.