More fallout, following the detention of Huawei's Chief Financial Officer Meng Wanzhou in Canada, experts believe that the situation may jeopardize a potential free trade deal among other damage to China-Canada ties. CGTN's Dan Williams has the latest from Vancouver.

A quiet, gloomy morning outside the Vancouver home of Meng Wanzhou, the chief financial officer of telecom giant Huawei. Gone are the legions of media that were camped here a week ago. Meng has been ordered to stay near this house while she awaits proceedings to extradite her to the U.S. But the reverberations of the arrest can be felt far beyond this quiet neighborhood. Canada says it simply abided by the rule of law when it arrested Meng. But it would appear the country now finds itself caught in the middle.

JAMES BRANDER, ASIA-PACIFIC PROF. OF INT'L BUSINESS UNIVERSITY OF BRITISH COLOMBIA "Canada-China relationships have obviously taken a couple of steps back. It's a big problem for Canada. It is obviously a lose-lose situation for Canada. And nothing good is coming out of this. And I don't think anything good can come out of it."

Canadian agents detained Meng at the request of Washington, which claims Huawei used Hong Kong-based Skycom Tech as a shell company to dodge U.S. sanctions on Iran. Two Canadian citizens have since been detained in China. Authorities there say they are being held on suspicion of engaging in activities that endanger national security.

DAN WILLIAMS VANCOUVER "It would appear the arrest of Meng Wanzhou could have a number of potential far-reaching repercussions. Canada and China have been working towards the completion of a free trade deal. But experts feel that in the current climate, any kind of deal is increasingly unlikely."

The prospect of a free trade deal with China is seen as particularly attractive for Canada, given its period of difficult negotiations with the U.S., the country's largest trading partner. Of more immediate concern, Canada's Automotive Parts Manufacturers' Association says Chinese automakers are putting plans to expand production into Canada on pause. This, as Canadian officials put a temporary halt to tourism advertisements in China.

JAMES BRANDER, ASIA-PACIFIC PROF. OF INT'L BUSINESS UNIVERSITY OF BRITISH COLOMBIA "For Canada, the United States is, by far, the most important market. That said, the Canada-China relationship has been growing very rapidly to being the second most important trading partner. And for British Colombia, the province that I am in, China is actually slightly more important than the United States. And people are nervous. Quite rightly. So, yes, of course, businesses will be holding off on those investments in both directions."

The fallout following the arrest being felt far and wide. Dan Williams, CGTN, Vancouver.