China has detained two Canadian men in what appears to be retaliation for the arrest of a top Huawei executive in Vancouver.
A spokesperson for the Chinese Foreign Ministry said entrepreneur Michael Spavor and former diplomat Michael Kovrig were taken into custody on Monday.
Lu Kang said they were being detained on suspicion of "endangering national security."
He said Canadian authorities have been informed of the arrests but refused to confirm whether they had been provided with legal representation.
Michael Kovrig, an adviser with the International Crisis Group, speaks during an interview in Hong Kong, 28-03-2018. Image: AP Photo
The move will raise the stakes in what has become a three-way international dispute that threatens relations between China, Canada and the US.
Huawei Chief Financial Officer Meng Wanzhou was arrested in Canada on December 1st and faces extradition to the US - where she faces charges over alleged breaches of US sanctions on Iran.
She is reportedly accused of using Hong Kong-based company Skycom to access Iranian markets in breach of the sanctions between 2009 to 2014.
She is further accused of making public misrepresentations about Skycom by claiming it was separate from the Chinese telecoms giant.
The 46-year-old Chinese executive was granted bail on Wednesday - confining her to Vancouver and its suburbs while she awaits possible extradition.
The daughter of Huawei founder Ren Zhengfei faces strict bail conditions - including electronic monitoring and the surrender of her passports.
Beijing has labelled the arrest a human rights violation.
It follows a 90-day truce agreed between Chinese President Xi Jinping and US President Donald Trump at the G20 Summit in Argentina.
Michael Spavor, centre, an entrepreneur, is seen with former NBA star Dennis Rodman, 19-12-2013. Image: AP Photo/Ng Han Guan
One of the Canadians detained, Michael Spavor, has longstanding ties to North Korea through his company, Paektu Cultural Exchange.
He helped bring NBA player Dennis Rodman to Pyongyang in 2013 and has organised a number of tours and joint cultural projects with the North since then.
He is also one of the only westerners to have met North Korean leader Kim Jong Un.
He was reportedly due in Seoul on Monday, but never showed up.
With reporting from IRN