News surfaced late Wednesday that Huawei's CFO, Wanzhou Meng was arrested on December 1 in Vancouver and is sought for extradition to the us for potential violations of the country's sanctions on Iran.
"The company has been provided very little information regarding the charges and is not aware of any wrongdoing by Ms. Meng", the statement said.
"The rapidly dwindling good-feeling towards the United States and China's vague trade war ceasefire turned actively hostile on Thursday, investors fearing that, 90-day truce or not, the relationship between the two superpowers might be about to take a turn for the worse".
"We were advised by them with a few days' notice that this was in the works".
The timing of the arrest could not have come at a worse time for Huawei.
Today the Chinese government called for the release of Meng Wanzhou, an executive at Chinese electronics maker Huawei after she was arrested in Canada last weekend while transferring flights.
It said it could not say more as Ms Meng had sought a ban on the publication of details and this had been ordered by the courts.
Meng, who was collared by Canadian authorities at Vancouver airport, is now facing extradition to the USA, where she will, it is believed, face allegations she broke sanctions on selling equipment to Iran.
What could be behind it?
Officials discovered ZTE was selling its products with US technology to Iran and North Korea.
USA national security adviser John Bolton told NPR that he knew of the pending arrest in advance.
China has condemned the arrest.
"China's discussed these things with the United States many times down through the years and the results have not been very good".
In a statement to The Register, Huawei denied violating America's sanctions on Iran, and vowed to fight any charges against their chief financial officer.
Ms Meng's arrest is part of an ongoing investigation by United States prosecutors into whether Huawei violated banking laws as it sought to evade sanctions against Iran by routing a series of transactions through HSBC Holdings, according to a person briefed on the matter. He said targeting Huawei, one of the most successful Chinese companies, "will trigger anti-US sentiment in China".
A statement from the Chinese embassy in Canada was far angrier.
"At the request of the U.S. side, the Canadian side arrested a Chinese citizen not violating any American or Canadian law". China's Commerce Department expressed confidence on Thursday that a trade agreement with the U.S. could still be reached in time to hit a 90-day deadline, but it called on the United States and Canada to "immediately correct the wrongdoing" and restore her "personal freedom".
"Huawei is one company we've been concerned about", Mr Bolton told NPR.
Huawei has the second-largest share of the global smartphone market, beating out Apple.
Huawei derives around half of its revenue from supplying equipment to telecoms carriers around the world.
Over the summer, Australia also barred Huawei from providing 5G technology for wireless networks in the country over espionage fears.
Asked whether he had spoken to the Chinese premier or the ambassador, Trudeau said he had had no conversations with global counterparts about the case.
Earlier this year, it barred U.S. companies from exporting to ZTE, effectively shutting down the firm.
In exchange, ZTE agreed to pay a hefty $1 billion fine and put an additional $400 million in escrow in case of future violations.
What are the Iran sanctions?
US Senator Ben Sasse praised the action and said that it was "for breaking US sanctions against Iran".