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New York (CNN Business)The arrest of a top Huawei executive has sent stock markets plunging around the world and threatens to derail the tenuous trade truce between the United States and China.

Meng Wanzhou, chief financial officer of the Chinese tech giant Huawei Technologies, was apprehended in Vancouver on December 1 at the request of US authorities.

A judge accepted Meng's request to bar both police and prosecutors from releasing information about the case, so additional information about why she was arrested is limited. But the consequences were immediate.

US lawmakers are condemning Huawei, which they say poses a national security threat to the United States. Chinese officials have called for Meng's release. An http://www.globaltimes.cn/content/1130636.shtml in the Chinese tabloid Global Times said the United States is just trying to stifle Huawei because it's a business competitor.

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The arrest could jeopardize an already precarious ceasefire in the conflict between the United States and China over trade and technology.

"This type of action will affect the atmosphere around the negotiations — making them less likely to bring a sustainable settlement," Eurasia Group political risk analysts said in a note to clients.

China's Commerce Ministry said Thursday it was confident a trade agreement with the United States could still be reached in time to hit a 90-day deadline set by Trump. But the Chinese government is clearly angry about Meng's arrest. A lot hinges on what Beijing and Washington do next.

A Trump administration official says there is a plan for the United States to seek Meng's extradition. The view among some officials is that she could be used as leverage with China in trade talks.
 
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