Canada surprised the world last week whenit announced that it had detained telecommunications executive Meng Wanzhou, the CFO of Chinese company Huawei. Canada is in the process of extraditing Mengto the United States, where it is expected she will face charges in relation tosanctions violations committed by her company.

While Huawei isn’t a household name in the U.S.,it’s one that will now become more important. Here’s all you need to know and how thisnews could impact global financial politics.

Huawei is the World’s Second Largest Smartphone Manufacturer

Huawei is second only to Samsung in terms of cellular phone units sold, but its core business is in telecommunications infrastructure. Huawei is one of the frontrunners in the race to develop and deploy 5G networks both in China and around the world.

The U.S. government has been a majoropponent of Huawei, banning the use of its equipment, and recommending thatconsumers don’t use its smartphones. Australia, New Zealand, and the UnitedKingdom have also raised concerns with the use of Huawei infrastructure,alleging that China has used deployed equipment to spy on foreign nations.Australia, like the U.S., has outright banned in its new 5G networks.

Huawei is a private company but is seen asa flagship brand for Chinese economic success. The shunning has beenparticularly embarrassing for the Chinese government.

Chinese Embassy has Summoned U.S. Officials

The arrest of Meng Wanzhou came suddenly and with much surprise, even for those who are deeply embedded within political circles. The extradition case has thrown recent positive trade news in the air, as Beijing has expressed its anger and summoned both U.S. and Canadian officials in China to discuss the release of Meng.

Some Speculate that Meng Could be Used as Trade War Negotiating Chip

One analyst from Eurasia Group has saidthat the arrest will “affect the atmosphere” around the pending trade negotiations, and that it is now less likely that a “sustainable settlement”can be reached between the U.S. and China. Meng could also be used as a bargaining chip, with the U.S. exchanging her release for Chinese trade concessions.

Huawei was not in the mind of the average American investor until the beginning of last week. Now, it seems, that the company and its CFO will be critical elements in the ongoing trade tensions that have undermined stock markets throughout 2018.