The daughter of Chinese tech giant Huawei’s founder, Meng Wanzhou, has been arrested in Canada and is facing extradition to the United States.

Meng – also the company’s CFO – was arrested on December 1, with Huawei saying it was “not aware of any wrongdoing”.

US authorities have been probing the company for allegedly shipping US-origin products to Iran and other countries in violation of US export and sanctions laws.

It comes just days after presidents Donald Trump and Xi Jinping agreed to steps to resolve a brewing trade war.

Australian Strategic Policy Institute Executive Director Peter Jennings says the arrest will escalate tensions between China and the US.

“She is amongst the absolute elite of the Chinese business community, coming from a family with very deep historical ties to the Chinese communist party.”

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