Huawei CFO’s arrest poses a threat to China’s global 5G mobile ambitions

China’s push to lead the global development and roll-out of 5G mobile networks could be at risk, following the recent arrest of Huawei Technologies chief financial officer Sabrina Meng Wanzhou.

Analysts on Thursday said the arrest and detention in Canada of Meng, the daughter of Huawei founder Ren Zhengfei and the firm’s deputy chairwoman, at the request of US authorities marked another level of pressure on the Shenzhen-based company by Washington even as the US and China agreed to a 90-day trade war truce.

“It is not yet clear whether there has been a breach committed, but for the CFO to be detained we can expect serious accusations to be levied against Huawei in the coming days,” said Paul Haswell, a partner who advises technology companies at international law firm Pinsent Masons.

Haswell said efforts by Huawei, the world’s largest telecommunications equipment maker, to lead global 5G network deployments may be hampered if it incurs US sanctions, which would block access to American technology suppliers and limit the number of markets where the company can sell its products.

Meng, who was arrested in Vancouver on December 1 while in transit, is facing extradition to the US. The Huawei CFO, whose bail hearing is scheduled this Friday, had earlier sought a publication ban on the details of her arrest, according to Canada’s justice department.