HONG KONG — The Huawei chief financial officer arrested in Canada at the behest of American authorities isn’t an ordinary senior executive.

Sabrina Meng is the daughter of the Chinese telecommunications giant’s founder and recently emerged as his potential successor.

Read: Huawei CFO arrested in Canada at U.S. request for allegedly breaking Iran sanctions

Meng’s high profile raises the stakes not only for her company, but also for the U.S. and China, which are embarking on a fresh effort to resolve tensions around trade and technology. China’s embassy to Canada has already complained bitterly about the arrest and other Chinese tech companies have been punished this year for sanctions violations and allegedly stealing chip-design secrets.

Also see: China may target U.S. executives after arrest of Huawei CFO, this expert warns

The detention of Meng, who uses the name Meng Wanzhou and was also previously known as Cathy, also deals a personal blow to her father, Ren Zhengfei, a 74-year-old former military engineer who founded Huawei more than three decades ago. He built Huawei into one of China’s largest and most global private business empires. Washington has lately been stepping up efforts to curb Huawei’s global dominance in telecom-networking equipment due to concerns that its systems could be used for spying by Beijing. Huawei has long rejected the American claims, saying its systems are as secure as those of its Western rivals.

An expanded version of this report appears on WSJ.com.

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