Insight: Why arrest of Huawei CFO is important

What is Huawei, and why the arrest of its CFO matters

The arrest of Meng Wanzhou has sent stock markets plunging and threatens to derail the tenuous US-China trade truce.

What is Huawei?

Huawei is a Chinese tech company based in Shenzhen that sells smartphones and telecommunications equipment around the world. Earlier this year, it become the world’s second-largest smartphone maker, behind Samsung, according to IDC. It sells more phones than Apple (AAPL).

How has China responded?

Meng’s arrest has struck a nerve in China. The country’s Ministry of Foreign Affairs on Thursday called for Meng to be released and for the United States and Canada to explain why she’d been detained.

The city government of Shenzhen, where Huawei is based, put out a similar statement. It said it’s watching the matter closely and calling for Meng to be released “immediately.”

The Global Times said in an editorial that the arrest shows Washington is “resorting to a despicable rogue’s approach as it cannot stop Huawei’s 5G advance in the market.” It said the move “obviously goes against the consensus” reached by US President Donald Trump and Chinese President Xi Jinping on trade, who met over the weekend in Argentina.

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