Meng Wanzhou, the chief financial officer of telecommunications giant Huawei and daughter of its founder, was detained at the request of the U.S. during a layover at the Vancouver airport last Saturday - the same day that Presidents Donald Trump and Xi Jinping of China agreed over dinner to a 90-day ceasefire in a trade dispute that threatens to disrupt global commerce.
She is specifically accused of lying to U.S. banks about the use of a covert subsidiary to sell to Iran in breach of sanctions.
USA authorities, however, claim Huawei continued to control the company, with Gibb-Carsley noting that SkyCom employees continued to carry Huawei identification and use its email.
A Canadian government lawyer asked the court to deny her bail, saying she has been accused of "conspiracy to defraud multiple financial institutions" and if convicted faces more than 30 years in prison.
"But one thing that is undoubtedly true and proven is the U.S. is trying to do whatever it can to contain Huawei's expansion in the world simply because the company is the point man for China's competitive technology companies", it said.
The US alleges that Huawei used a Hong Kong shell company to sell equipment in Iran in violation of US sanctions.
According to Reuters, Huawei tried to obstruct the investigation by moving out of the United States any Chinese national employees who may be potential witnesses regarding company's operations in Iran.
As the daughter of Huawei's founder, Ren Zhengfei, she is seen as his heir apparent.
"In the negotiations, of course, they'll push that across the table and make it as embarrassing for the Canadians as possible", he said.
China on Thursday demanded Canada release Meng Wanzhou.
Officials from major USA companies who attended the event - a scheduled meeting of the local chapter of the U.S. department of state's Overseas Security Advisory Council (OSAC) - voiced their concerns about a Chinese reprisal, two people with knowledge of the meeting said.
It is within the context of the broader economic clash between two industrial powers, and the 90-day window allocated to resolve it, that Meng's arrest should be viewed, according to Marshall Mays, director of Emerging Alpha Advisors Limited. "Let's see who doesn't get a permit or which United States executive gets arrested", she said.
He dismissed speculation that Meng's arrest was a deliberate ploy to gain leverage over China in trade talks and said that Trump did not know the arrest was coming. Fleeing would cause Meng to lose "face", Meng's lawyer said.
McCallum was clear that Chinese consular officials will have access to Meng "just as we seek consular access for detained Canadians around the world, including in China". She was widely considered to be his likely successor. The prosecutor said Meng is a flight risk and should not be granted bail.
For now, the Huawei executive will remain in Canada.
"Yet Washington, in persuading and pressuring its allies to shun cooperation with Huawei, has helped erode that political trust", the English-language paper said. In 2013, Reuters found Meng served on the board of Skycom.