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There’s a good chance the Chinese will retaliate for the arrest of Huawei CFO Meng Wanzhou by targeting American businesses in China, former assistant U.S. trade representative Jeff Moon told CNBC on Thursday.

Meng was arrested on Saturday in Canada and is facing extradition to the United States reportedly for violating U.S. sanctions on Iran.

In an interview with “Power Lunch,” Moon said that while China has responded to the escalating U.S. tariffs in somewhat “measured ways,” the arrest is fairly aggressive and may tip China into being more forceful in its retaliation.

“Every American firm that does business in China is vulnerable, because Chinese laws are extremely vague. There is no way to get official clarification. So people, in order to do business, have to work in that murky regulatory environment,” said Moon, who served as assistant U.S. trade representative to China under President Barack Obama.

“The Chinese can crack down quite easily because those laws are vague and they can interpret them however they want,” he added.

Meng’s detention came on the same day that President Donald Trump and Chinese President Xi Jinping struck a 90-day truce on implementing additional tariffs. The arrest wasn’t announced until Wednesday.

Huawei is being investigated for using HSBC to allegedly make illegal transactions involving Iran, Reuters reported on Thursday. The Shenzhen-based technology company is the world’s second-largest seller of phones behind Samsung. Meng is the founder’s daughter.

Moon thinks U.S. officials should talk to the Canadian government about not extraditing Meng. If the extradition happens, there is a “high possibility” China will retaliate in a similar fashion.

If so, “things will start getting out of control, and reaching an agreement that will settle the trade dispute will be much harder.”

The escalating trade war has fueled fear among investors, and Meng’s arrest added to that concern. U.S. equities fell sharply on Thursday, a day after the Dow Jones Industrial Average plunged nearly 800 points.

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India’s cenbank governor Urjit Patel steps down, stuns markets

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Urjit Patel, governor of the Reserve Bank of India (RBI), gestures as he speaks during a news conference in Mumbai, India, on Wednesday, Dec. 7, 2016. 

Dhiraj Singh/Bloomberg | Bloomberg | Getty Images

Urjit Patel, governor of the Reserve Bank of India (RBI), gestures as he speaks during a news conference in Mumbai, India, on Wednesday, Dec. 7, 2016. 

Analysts and market watchers said the recent dispute between the RBI and the government could have been a major factor in Patel’s decision to resign.

“Quite clearly the resignation of Urjit Patel shows that nothing has changed,” Yashwant Sinha, a former finance minister and member of the ruling Bharatiya Janata Party, told CNBC-TV18.

“The resignation is a clear sign of the government trying to interfere with the working of the RBI,” he added.

Prime Minister Narendra Modi’s government has been putting pressure on the RBI to ease its regulatory curbs on some banks, infuse more liquidity and relax capital norms as it faces a slowing economy ahead of general elections due by May.

RBI Deputy Governor Viral Acharya said in a speech in October that undermining a central bank’s autonomy could be “catastrophic”, prompting a public dispute that added to the rift between the bank and government.

The Modi government has stacked the RBI’s 18-member board with its own nominees, in what critics say is a move to exert greater control over the central bank’s regulatory powers.

Patel’s sudden resignation is expected to roil financial markets on Tuesday.

Investors will be keen to know who is Patel’s replacement and the direction of the central bank’s financial and monetary policy, analysts said.

“Markets certainly will be concerned unless there is further clarification that come through tonight,” said R. Sivakumar, head of fixed income at Axis Mutual Fund.

“I think tomorrow and over the next few days we can expect heightened volatility in the markets,” he added.

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Transport giant Scania is working on a hydrogen-powered refuse truck 

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Swedish transport firm Scania is developing a hydrogen fuel cell refuse truck with waste handling company Renova.

In an announcement Monday, the business said the vehicle would have a fully electrified power-train and an electrified compactor.

“We are highly interested in gaining more experience of fuel cells in actual customer operations,” Scania’s Marita Nilsson said in a statement. “Fuel cells constitute a promising technology in the needed decarbonisation of transports,” Nilsson added.

Scania added that it was cooperating with both the Swedish Energy Agency and Stockholm’s Royal Institute of Technology on the project. It’s expected that the fuel cell truck will be delivered either at the end of 2019 or beginning of 2020.

Hans Zackrisson, Renova’s head of development, said Monday that electrification using fuel cells fueled by hydrogen was a “highly appealing alternative” for heavy commercial vehicles like refuse trucks.

“The trucks benefit from all the advantages of electrification while maintaining some of the best aspects of fossil-fuel operations, namely range, hours in service and payload,” Zackrisson added.

The European Commission has described hydrogen as an energy carrier with “great potential for clean, efficient power in stationary, portable and transport applications.”

Scania is among a number of companies looking to develop and launch hydrogen fuel cell vehicles. In September, for example, railway manufacturer Alstom launched what it described as the world’s first hydrogen fuel cell train.

Its Coradia iLint uses fuel cells that turn hydrogen and oxygen into electricity. In terms of speed, the zero-emission train can travel up to 140 kilometers per hour.

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Amazon Go store said to be planned for London’s Oxford Circus

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The e-commerce company opened its first Amazon Go store at its Seattle campus in January, where people swipe their Amazon Go smartphone app onto a sensor to enter, pick up groceries, and leave without having to go to a checkout or pay at a register. Amazon says it uses computer vision, algorithms and sensors to detect the items a shopper has picked up, before that person’s account is charged. There are now seven Amazon Go stores in the U.S., and the company is considering opening 3,000 stores by 2021.

The U.K. is an important market for Amazon, which said it had seen “record levels” of shopping in the country at the start of its Black Friday sale. It has hired 20,000 seasonal workers for this year’s holiday period.

Amazon had not responded to CNBC’s request for comment at the time of publication.

Read the story on The Telegraph’s website.

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