There is much that is fogbound, yet there is reason to describe last Wednesday’s arrest of Meng Wanzhou, the powerful executive of China’s telecom behemoth, Huawei, as a thunderbolt for the markets. On closer reflection, it is an action against a company that plays a pivotal role in the spread of Chinese technology.

The irony, therefore, has bamboozled the world. Arrested at the behest of America in Canada, from there to be extradited to the US, Meng’s dire predicament comes in the immediate aftermath of the trade truce, so-called, between Washington and Beijing which in itself was a fairly positive indication of an essay towards mending of fences between Donald Trump and Xi Jinping.

If not a trade war quite yet, there is little doubt that the storm clouds are gathering over matters economic. Huawei is the world’s largest telecom equipment provider, and its second largest mobile phone manufacturer and is generally regarded as a pillar of the Chinese economy.

Hence the trans-Atlantic jaw-dropping over the timing of the arrest. It is difficult to fathom the cross-currents at play and it may be a while before the world gets to know the truth of the matter. Meng was arrested on December 1, the day President Xi and President Trump had sat down to dinner in Buenos Aires. That culinary bonhomie has now been reduced to a shambolic sideshow of the G20 summit. There is little doubt that the arrest has undermined the import of the trade truce.

Equally, it was a decidedly political move. Small wonder that diplomats of China have demanded her release, saying she has broken no laws. The arrest reportedly relates to allegations that Huawei has breached US sanctions on exports to Iran. US prosecutors began an investigation two years ago and last year, another Chinese telecom firm, ZTE, pleaded guilty to the charge of violating sanctions.

A US ban on the sale of parts and software to the firm was downgraded to a fine of $892m and monitoring following Mr Trump’s intervention. Markedly, there were no detentions at that time. White House is yet to answer the crucial question doing the rounds in Beijing ~ So why an arrest, why her and why now? Markets were generally unnerved over the possibility that this arrest could rattle the fragile trade truce.

China has let it be known that it wants a deal and that it will immediately implement the agreed measures. Whatever the fallout and long-term outcomes, the development reflects western concerns about China’s increasing international might.

The arrest of a family member linked to Huawei’s founder indicates how the tension between the two countries is rapidly escalating. The arrest is concordant with America’s appeal to other nations to curb business ventures with Huawei because of security concerns. The arrest exemplifies an awesome cocktail of geostrategy and international trade.