Huawei's CFO has been arrested in Canada, at the request of U.S. authorities.
Meng Wanzhou is also the daughter of the Chinese tech giant's founder.
Canadian officials say she was arrested on Saturday (December 1), the same day as China and the U.S. signed a temporary trade war truce.
Her arrest now throwing the ceasefire into doubt.
A source says the arrest is tied to violations of U.S. sanctions but Reuters was unable to verify details of the breach.
The shock arrest only became public on Wednesday (December 5) and drew strong condemnation from Chinese state media the editor of the Global Times tweeting: "The U.S. can't beat Huawei in the market.
Don't act like a despicable rogue." Huawei is the world's second-biggest smartphone maker and a key player in China's push to develop technology, from chips to 5G networks.
Sources told Reuters in April that U.S. authorities have been probing Huawei for allegedly shipping products that originate in the U.S. to Iran.
Huawei said in a statement it was not aware of any wrongdoing by Meng The U.S. Justice Department declined to comment on Wednesday.
Meng's arrest and any potential sanctions could send major shockwaves through the world's technology supply chain.
It's already rocked global stock markets Thursday (December 6), sparking a sell-off that dragged down shares in Japan, Hong Kong, and China.
Shares in Asian suppliers to Huawei were hard hit.
The company also counts Qualcomm and Intel among its major suppliers.
China's embassy in Canada said it resolutely opposed Meng's arrest and called for her release.
Canadian officials say Meng's court day has been set for Friday (December 7).