And the detention of Huawei’s CFO won’t help.

The arrest of Huawei CFO Meng Wanzhou is a dangerous move by the Trump administration in its intensifying conflict with China.

The arrest of Huawei CFO Meng Wanzhou was another blow in the ongoing trade war between the U.S. and China. Wanzhou’s arrest prompts two important questions: First, what are the immediate implications for Huawei and the rest of the tech industry? Second, what are the wider implications for U.S.-China trade and technological competition?

The U.S. Commerce Department has accused two of China’s largest telecom providers for violating sanctions by selling American technology to Iran, North Korea, Cuba, and Sudan. If Huawei and ZTE want to find a more receptive environment in U.S. markets, they may have to choose between following Chinese government desires to aid friendly nations, or complying with U.S. objections to its actions in controversial markets.

The recent Sony hack should increase dialogue between China and the U.S. on how to respond to cyber attacks and how to improve cooperation in cyber governance. Both countries are suspicious of the other’s activities, but existing interconnected Internet infrastructure requires new forms of dialogue and accountability.

While many of China’s largest brands – Haier, Huawei and Xiaomi – have not yet become household names, Joel Backaler describes how China’s domestic market is changing and the companies that are focusing on developing their brand internationally.

The issue of cyber warfare and other cyber security incidents is becoming a serious problem for China, and is causing problems with its relations with foreign powers. In particular, China and the US have seen an increase in tensions due to cyber security issues initiated by US intelligence. The two powers should cooperate to avoid future cyber related conflicts.

The U.S. National Security Agency (NSA) infiltrated Chinese telecom giant Huawei years ago. The disclosures highlight the global risks associated with unilateral government surveillance.

Reportedly, an internal EU analysis has led European officials to weigh steps over Chinese vendors Huawei and ZTE. An unmanaged friction has the potential to escalate into trade friction between the EU and China.

Now a full global competitor, Huawei has come to be targeted by the Americans for at least two reasons. Firstly, Americans have become even more anxious about China’s rise, which they see as a threat to their own interests. Secondly, their own companies and industries must be protected.