Huawei’s Chief Financial Officer Sabrina Meng was freed on bail of USD7.5 million by Canadian judge William Ehrcke at the British Columbia Supreme Court in Vancouver. The collateral for the bail includes cash and real estate, partly pledged by friends of the Huawei executive. Her lawyer cited medical conditions and the lack of the risk of her fleeing as reasons for granting bail. The judge outlined 15 provisions including Meng agreeing to submit to constant surveillance, and surrendering both her Chinese and Hong Kong passports. She is also subject to a curfew between 11 pm and 6 am. The U.S. has not yet submitted a formal request for extradition. If no formal notice is given within 60 days, she will be released. The U.S. has until January 8 to file a formal extradition request. She is due back in court on February 6, when the judge will set a date for her extradition hearing.

But the Chinese government kept up the pressure for her immediate release after summoning the Canadian and U.S. Ambassadors to the Chinese Foreign Ministry. In China, a nationalist backlash against her arrest is also continuing, forcing Canada Goose to delay the opening of a 600 square meter flagship store in Taikoo Li Sanlitun in Beijing. It is to be the 61-year-old company’s first physical store in mainland China.

The U.S. extradition request accuses Meng of fraud by covering up Huawei’s links to a company that traded with Iran in breach of U.S. sanctions. She is said to have told financial institutions that affiliate Skycom was a separate company in order to conduct business in Iran, when in fact it was a Huawei subsidiary. Chinese Foreign Ministry Spokesman Lu Kang said that Canada failed to inform China about the detention of Meng until officials were asked about the case, thereby violating a bilateral consular agreement. The assertion came just hours after Ottawa insisted it had notified the Chinese Consulate in Vancouver on December 1, the day of her arrest.

Chinese Foreign Minister Wang Yi warned Canada and the U.S.: “We keep abreast of the safety and welfare of every Chinese overseas, at all times. The government will not sit back in silence amid bullying that recklessly violates the legitimate rights and interests of Chinese citizens,” Wang said at an annual conference on international relations and diplomacy. “The Chinese government will defend its citizens’ legal rights by all means.” The possibility that Canada may comply with China’s call to directly release Meng are small, said Shi Yinhong, Director of Renmin University’s Center for American Studies.

Meanwhile, two Canadians living in China have been arrested, in what Chinese authorities say is unrelated to the Meng case, but what Western analysts consider to be retaliation. Former Canadian Diplomat Michael Kovrig was detained on the charge that his employer, the Brussels-based International Crisis Group, was not properly registered in China. He was acting as the NGO’s North East Asia Senior Adviser since February 2017. Michael Spavor was arrested in Dandong, Liaoning province. He is known for his contacts with high-ranking North Korean officials, including top leader Kim Jong-un. Spavor also helped facilitate NBA player Dennis Rodman’s visit to North Korea in 2013. Both Canadians were under investigation by state security officers in Beijing and Liaoning province respectively on suspicion of “engaging in activities that endangered China’s national security.”

Huawei is still struggling to get his products accepted in Western countries that have security concerns. Japan joined the U.S., Australia and New Zealand in effectively blocking Huawei from taking part in supplying equipment for its 5G network. Japanese authorities have decided to exclude Huawei and ZTE Corp, another China telecoms equipment company, from public procurement as of April 2019. Japan’s three major mobile phone carriers planned to take concerted action alongside the government, with company sources saying that they will stop using Chinese products in the current mobile base stations and for the next-generation 5G mobile communications network.

The claim that using Huawei products poses a security risk is not shared by all Western nations and no evidence has been produced. French Finance Minister Bruno Le Maire told journalists Huawei was welcome in France. “It’s a company that plays an important role in France, that invests in France and these investments are welcome,” Le Maire said after meeting Chinese Vice Premier Hu Chunhua. However he added: “If some of the investments touch on national sovereignty or sensitive technologies, it’s up to us, the government, to set certain limits.” The Italian island of Sardinia meanwhile is working with Huawei to create the country’s first regional “smart zone”. Huawei has over 11,000 staff based in Europe, business deals with European telecoms operators, and 18 research centers. “We categorically reject any allegation that we might pose a security threat,” the company said. German, British and Belgian security services have all warned about dealing with Chinese telecom firms.

Some U.S. and Canadian companies are suspending trips by their executives to China, fearful that they may be arrested. Chinese business leaders and hi-tech researchers are also reconsidering foreign trips, while some Chinese companies are offering their employees subsidies to buy Huawei smartphones and punish those who buy iPhones.