Huawei, the Chinese tech company, has appointed its chairman as the acting chief financial officer after the arrest of Meng Wanzhou, the company’s CFO, in Canada.
Liang Hua will be taking on the additional responsibilities of CFO following a turbulent day for the firm which saw its share price drop by 4.46 percent.
The news greatly affected markets. It triggered a sell-off in Europe, Asia, and the United States as the investors worried regarding an escalation of tensions between China and the United States.
Wanzhou is 46 years old. He is also the daughter of Ren Zhengfe, the founder of Huawei. He was detained last Saturday at the request of officials of the United States. She now faces extradition to the US.
Even though the charges are currently unexplained, reportedly, it is regarding an alleged violation of the sanctions of the US against Iran as well as claims involving cyber espionage.
Authorities in Canada announced that they had made the arrest late last Wednesday evening and Wanzhou is scheduled to appear in a Vancouver court for a bail hearing.
The arrest is threatening to reignite the trade war between the US and China days after Chinese President Xi Jinping and US President Donald Trump reached a truce during the G20 summit that was held in Argentina.
After the arrest, the firm said that it “has been provided very little information regarding the charges and is not aware of any wrongdoing by Ms. Meng.”
The firm is the biggest telecoms provider in the world. This week, it has also given in to the demands from security officials of the United Kingdom to address serious risks over its upgrade to fifth-generation technologies. According to the Financial Times, it could be susceptible to cyber espionage.
It comes after the government of the United States increased the pressure on its Western allies to snub Huawei when upgrading their services for security reasons.