A Canadian court has granted bail to Huawei Chief Financial Officer Meng Wanzhou following her arrest earlier this month at the request of U.S. authorities for allegedly trying to evade American sanctions on Iran.
A judge set her bail at $10 million Canadian, of which $7 million must be in cash. Meng also agreed to wear a GPS tracker and to the restrictions on her ability to travel within Canada, including giving up her passports.
The case has shaken financial markets, with investors concerned it could ratchet up trade tensions between the U.S. and China. Meng’s arrest came the same day President Donald Trump announced a pause in the tariff war between the two countries.
“Meng and the broader fate of Huawei will undoubtedly worsen US-China relations and make it even harder to bring negotiations to a conclusion,” researchers at Eurasia Group wrote in a note. Evidence in Meng’s case could lead to the U.S. fining Huawei, installing monitors at the company or imposing an export ban on it, a step that would bring U.S.-China relations “to a true crisis.”
On Monday, Chinese officials arrested a former Canadian diplomat in apparent retaliation.
Meng faces potential extradition to the U.S., where she’s accused of violating American sanctions on doing business with Iran. The U.S. has until Jan. 9 to formally file the extradition request.
The next court date is set for Feb. 6.
Meng, 46, is the daughter of billionaire Huawei founder Ren Zhengfei, a former Chinese military engineer, and is viewed as his likely heir apparent. While personal details are scant, she is married and has a son and a daughter, Huawei said.