Ottawa confirms China has detained second Canadian

Huawei executive gets bail in case rattling China ties

China has deflected questions about whether the action was linked to Meng's case, saying only that Canada should drop the prosecution.

"The Canadian government at the request of the US side wrongly detained the Chinese citizen", Foreign Ministry spokesman Lu Kang said. China summoned the USA ambassador to lodge a formal protest.

China earlier warned of dire consequences if Meng wasn't released and the editor in chief of the Global Times, a Communist Party-run tabloid known for its provocative views, warned in a video Wednesday night of "retaliatory measures" if Canada doesn't free Meng.

T-Mobile US Inc (TMUS.O) and Sprint Corp (S.N) expect their merger to be approved by a USA national security panel as early as next week, after their respective parent companies said they would consider curbing their use of equipment from China's Huawei Technologies [HWT.UL], people familiar with the matter told Reuters.

What makes this situation so worrying is comments by Mr Trump. Are Ottawa's fears of becoming a proxy in the trade war between the U.S. and China bearing out?

Foreign Affairs Minister Chrystia Freeland and Defence Minister Harjit Sajjan are holding talks with their USA counterparts in Washington Friday that will focus on Beijing's detention of the two Canadians caught up in an worldwide dispute over Ms. Meng's arrest.

In the cases of both men, Freeland said, the Canadian government's "immediate concern has been to gain consular access to them and to understand what the charges are being put on them by the Chinese authorities". On the technology issue, the question of whether Canada will block Huawei's participation in this country's 5G networks is also at stake, with the US and some former members of Canada's security establishment piling on the pressure to follow the lead of the US, Australia and New Zealand and bar a role for Huawei.

Speaking to AFP, Fung said the controversy, however, is not likely to affect Meng directly: "We´re a pretty low key city, we routinely get Hollywood stars come through and people are not badgering them".

More recently, he has been trying to facilitate investment in North Korea in anticipation of sanctions being lifted, often hosting both North Korean officials and potential investors at his office in Dandong, as well as on trips inside North Korea, Spavor told Reuters in earlier interviews.

Canadian businessman Michael Spavor poses with girls at a school in Rason Special Economic Zone, North Korea, in 2012.

Spavor said in one of his most recent Facebook posts he was planning a trip to Seoul, but did not arrive by Monday as planned, BBC News reported. He organized Rodman's visits in 2013 and 2014.

Other photographs taken at the time showed Spavor laughing and shaking hands with Kim Jong Un, and in February, he was given a front-row seat to a military parade that reportedly was off-limits to foreign media.

Asked about it on Wednesday, Assistant Attorney-General John Demers said his department was not "a tool of trade". It said his case had been raised directly with Chinese officials.

But Meng Wanzhou, heiress to her billionaire father´s global tech conglomerate, is managing to surround herself with a few home comforts.

On Tuesday, a Canadian judge released Meng from jail after a bail payment of $10 million.

Meng, the chief financial officer of Huawei Technologies [HWT.UL], has been accused by US prosecutors of misleading banks about transactions linked to Iran, putting the banks at risk of violating sanctions.

She is the also vice chairman of Huawei, the second-largest smartphone creator in the world and the daughter of the company's founder, Ren Zhengfei.

Lawyers for Ms Meng told the court that Huawei had already separated itself from Skycom.

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