Relations turn icy over arrest of Chinese CFO

China has detained a former Canadian diplomat in Beijing in apparent retaliation for the jailing of a top Chinese executive at the request of the United States, escalating a legal and diplomatic wrangle between the three countries.

Relations were shaken by Canada’s arrest of Meng Wanzhou, the chief financial officer of Chinese telecommunications giant Huawei and daughter of its founder. Canadian authorities detained Meng on Dec. 1 during a layover at the Vancouver airport. The U.S. accuses Huawei of violating American economic sanctions against Iran.

The Huawei case has threatened to complicate U.S.-China efforts to resolve a bitter trade dispute — though the two countries signaled Tuesday they are preparing to resume talks.

Heightening tension between China and Canada, Canadian Public Safety Minister Ralph Goodale confirmed Tuesday that a former Canadian diplomat had been detained in Beijing. The detention came after China warned Canada of consequences for Meng’s arrest.

“We’re deeply concerned,” said Goodale, who did not identify the former diplomat. “A Canadian is obviously in difficulty in China . ... We are sparing no effort to do everything we possibly can to look after his safety.”

Michael Kovrig, who previously worked as a diplomat in Beijing, Hong Kong and the United Nations, was taken into custody Monday night during one of his regular visits to Beijing, according to a person familiar with the matter. Kovrig is now based in Hong Kong as North East Asia adviser for the International Crisis Group.

Canada had been bracing for retaliation for Meng’ arrest. The Canadian province of British Columbia canceled a trade mission to China amid fears China could detain Canadians to put pressure on Ottawa over Meng’s detention.

Former Canadian Liberal leader Bob Rae said it’s clear why Kovrig was detained, declaring in a tweet: “It’s called repression and retaliation.”

In Vancouver, meanwhile, Meng appeared in court for a third day Tuesday as she sought her release on bail.

Meng’s lawyer, David Martin, said his team had worked through the night to satisfy concerns about the Chinese executive’s potential release.

Martin said they contacted four people willing to put up money to guarantee that Meng won’t flee.