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Chinese Executive’s arrest could dampen trade talks.

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The temporary cease-fire in the trade war between the United States and China is already in a precarious position. However, the arrest of a Chinese National over alleged violations in the United States could make our trade future more tenuous.

Last week, at the request of the United States, Canada arrested the Chief Financial Officer of Chinese tech firm Huawei. The allegations against the woman include possible violations of United States sanctions against Iran. China is pressing for her release or a clear explanation. However, the trade negotiations continue. This is from former United States Department of Agriculture Trade Chief Paul Drazek.

This isn’t the first time the United States has had issues with Chinese companies violating our sanctions with Iran. A previous instance involving ZTE caused sanctions from the U.S. However, at the request of Chinese President Xi, President Trump eased some of those sanctions. Drazek says this is a whole new situation.

There are concerns China will retaliate over the arrest if they aren’t satisfied with the motives of the United States.

Iowa Senator Chuck Grassley, who is head of the Senate Judiciary Committee says this is just further proof of China, “flouting the rule of law and stealing from U.S. companies.” This could prove to be a sticky wicket for the trade and diplomacy between the top two economies in the world. A relationship that is in dire need of repair.