China has demanded the release of Huawei’s chief financial officer, whose arrest in Vancouver on US sanctions-busting charges sent markets reeling from the widening confrontation between the world’s two biggest economies.

In an angry rebuke yesterday, China’s embassy in Ottawa accused US and Canadian authorities of having “seriously harmed the human rights” of Meng Wanzhou, daughter of Ren Zhengfei, founder of the Chinese telecoms group. Diplomatic and intelligence officials briefed on the case said the US was pursuing Ms Meng as part of a criminal probe related to attempts by Huawei to sell US-made equipment to Iran, a move that could be in violation of sanctions against the country.

Canadian officials said the US was seeking to extradite Ms Meng after her arrest on Saturday. She will face a bail hearing today.