When Canada detained Huawei’s chief financial officer last year following a US extradition request, Chinese retribution was swift: two Canadians were arrested and a prisoner from the country was sentenced to death. 

This week, following Ottawa’s move to proceed with Meng Wanzhou’s extradition to the US, Beijing blocked shipments of canola, an oilseed that is one of Canada’s largest exports. The block was calibrated: it applies to the largest Canadian-owned exporter, but not to US companies that also ship the Canadian crop.

Across the Pacific, businesses in Australia and New Zealand are also grappling with concerns over economic retaliation for the country’s policies towards Huawei. Canberra has blocked the company from selling 5G equipment and New Zealand has raised security concerns over its role, raising concerns that Beijing is deploying a more subtle form of economic coercion.