Earlier this year it was also reported the Chinese telecoms giant had continued to sell its network equipment to Iran, despite possible financial sanctions.
It added that Meng's case showed China was facing a complicated power play in the US. He was sentenced to 46 months in prison.
Now, there are fears of what China may do next.
National security advisor John Bolton said he did not know if President Donald Trump was also aware of the operation to detain Huawei chief financial officer Meng Wanzhou on a U.S. request as she was changing planes in Vancouver. "We certainly don't inform the president on every one of them", Bolton said. He said targeting Huawei, one of its most successful companies, "will trigger anti-U.S. sentiment". A spokesman for Canada's justice department said Meng requested the ban and the department could not comment further.
"The Chinese will absolutely interpret it as being directly connected", said Dean Cheng, a Heritage Foundation senior research fellow on Chinese political and security affairs.
The dramatic arrest of a Chinese telecommunications executive has driven home why it will be so hard for the Trump administration to resolve its deepening conflict with China.
The ban threatened to put ZTE out of business and highlighted China's continued reliance on American technology, a vulnerability Beijing is eager to reduce.
Foreign ministry spokesman Geng Shuang said that Beijing asked Washington and Ottawa to "immediately release the detained person" and to explain the reason for her arrest, saying that arresting Meng without an explanation of the charge was a violation of her human rights, the Associated Press reported.
But Trudeau said Thursday he hasn't talked to any global counterparts about the affair, and he made clear he's staying out of it.
"As a permanent member of the UN Security Council, China has been faithfully and strictly implementing all the resolutions adopted by the Security Council", he said. Carvin speculated on Twitter that this could affect the sale of Canadian lobsters, among other things.
Whether Beijing was informed of the arrest before or after the dinner, they did know about it before they issued later statements indicating that trade talks were moving forward, a clear signal that the arrest had not derailed the trade talks.
While the government promptly protested against the arrest and demanded her release, the Foreign Ministry later said it was waiting for details on her capture.
"China has entertained hopes that they could split us away from the U.S.in the Trump era", he said.
In 2012, HSBC paid $1.92 billion and entered a deferred prosecution agreement with the USA attorney's office in Brooklyn for violating US sanctions and money-laundering laws.
Here are some key facts about the fast-growing telecoms equipment supplier. Huawei also recently surpassed Apple as the second biggest maker of cellphones after South Korea's Samsung Electronics Co.
Meng's detention also raised concerns about potential retaliation from Beijing in Canada, where Prime Minister Justin Trudeau sought to distance himself from the arrest.
Ye Tan, an independent Chinese economist, said Meng's arrest could be used as a "bargaining chip" in the trade talks.
Ms Meng's arrest is part of an ongoing investigation by United States prosecutors into whether Huawei violated banking laws as it sought to evade sanctions against Iran by routing a series of transactions through HSBC Holdings, according to a person briefed on the matter.
Yet another administration official told CNN the USA would seek Meng's extradition from Canada, adding that it could provide Washington with leverage against China as trade talks proceed. The company says it abides by all laws and rules where it operates.
Officials in some governments, particularly the United States, have voiced concern that his company is close to the Chinese military and government. But the company said in late 2011 that it was limiting its business activity and no longer seeking new customers there because of an "increasingly complex situation".
In April, China appealed to Washington to avoid damaging business confidence following a Wall Street Journal report that US authorities were allegedly investigating whether Huawei violated sanctions on Iran amid spiralling technology tensions. Today, Huawei's domestic and overseas revenue are equally split, according to the 2017 annual report.