Arrest Shakes Huawei as Global Skepticism of Its Business Grows

It is one of China’s proudest corporate success stories, a colossus in cutting-edge technology that elbowed out Western rivals to become the biggest supplier of the hardware that connects our modern world.

Now, all around the globe, the walls are going up for Huawei.

The United States, which for years has considered the Chinese telecommunications giant a security threat, aimed a straight shot at the company’s leadership when it secured the arrest, in Canada, of Huawei’s chief financial officer.

But lately, Huawei’s setbacks have come on multiple fronts, from New Zealand and Australia to Britain and Canada. China sees the company as a pivotal driver of its ambitions for global technological leadership. Increasingly, much of the rest of the world sees it as a potential conduit for espionage and sabotage.

The Canadian government said on Wednesday that it had detained Huawei’s chief financial officer, Meng Wanzhou, on Saturday in Vancouver, British Columbia, while she was transferring flights. The United States is seeking Ms. Meng’s extradition but has not said what prompted the arrest.

[Stock markets were shaken by the arrest, as investors feared the impact on U.S.-China trade relations.]

The news ignited anger and astonishment in China on Thursday, mere days after leaders of the United States and China announced a reprieve in their trade battle.

A “declaration of war” against China was how Hu Xijin, the editor in chief of Global Times, a state-run newspaper known for its nationalist tone, described Ms. Meng’s detention on Weibo, a Twitter-like service.

Gavin Ni, the chairman of Zero2IPO Group, an influential research and consulting firm in China’s investment industry, wrote

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