Back in April, the Wall Street Journal reported that U.S. prosecutors were investigating whether or not Huawei violated U.S. sanctions in relation to Iran. The U.S. Justice Department also have probed the company due to allegations that Huawei has used their technology to spy on Americans.

The United States has pressured other countries, including Canada, to block the Chinese company from installing their 5G mobile networks. The U.S. and Australia have already done so, with New Zealand blocking the first attempt of bringing in Huawei.

The pressure from the U.S. to Canada continues to grow as Republican Senator Marco Rubio, wrote to Prime Minister Justin Trudeau to bar the Chinese technology.

In a statement to The Globe and Mail, Mr. Rubio said that “Huawei has direct ties to the Chinese government and Communist Party, has long posed a serious risk to U.S. national security, and I continue to strongly urge Canada to reconsider Huawei’s inclusion in any aspect of its 5G development, introduction, and maintenance.”

Huawei’s ambitions have pushed them to be a “global powerhouse.” However, the arrest is likely to hurt any remaining support the company has in Western countries and to try and gain new business.

The Asian stock markets didn’t take the news lightly. The leading index in Hong Kong fell over 2.5%. In Tokyo, the stock market dropped almost 2%, while the Shanghai’s market fell about 1.7%. Huawei suppliers AAC Technologies (AACAY) and Sunny Optical (SNPTF) quickly dropped around 6% in Hong Kong.

Although with uncertainty looming in the back of the governments and investors’ minds, China still believes they can reach a trade deal with the U.S. sometime early 2019.

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