On the same day Presidents Donald Trump and Xi Jinping struck a truce in the U.S.-Chinese trade war in Argentina, Canadian authorities made an arrest that now threatens to make the conflict much worse.

The U.S. is seeking the extradition of Meng Wanzhou, chief financial officer of Huawei Technologies Co., after convincing Canada to arrest her on Dec. 1 in connection with violating sanctions against Iran.

China reacted with outrage on Wednesday, demanding that both countries move to free Meng immediately.