Diplomatic tensions between China and Canada over the Canadian detention of Huawei executive, Meng Wanzhou now seem to have taken an added turn.

Wanzhou who is under house arrest, is facing extradition to the U.S to face American charges. China has since retaliated against Canada by jailing two Canadians in China and charging them with spying, while a third Canadian charged with drug smuggling had his sentence increased and is now facing a death penalty.

The latest salvo in the escalating tension seems to have been fired by China this week as it revoked the permit of Canada’s largest exporter of canola seeds, Richardson International. China claims there are too many insects in the shipments.

Canola exports to China represent about $3.6  billion annually in canola seeds, oil, and meal..

The loss of the Chinese market even temporary would be an economic blow to Canada. (Carla Gottgens-Bloomberg)

Other canola exporters say that shipments to China have been slow to clear in that country since the Canadian detention of Wanzhou and the fear is the trade decision against Richardson may be extended to them as well.

Richardson denies any pest problem and has said the decision to block them was “motivated..by politics”.

China is Canada’s biggest importer of oil seeds representing about 40 per cent of the total export figures of canola products while other markets include Japan, the U.S., Mexico, U.A.E., France, and Pakistan.

Canada’s agriculture minister responding to CTV news said, their own investigation into canola “confirmed they have not identified any pests or bacteria of concern”.