Canada was obeying international treaties when it detained Meng. The Chinese state took Canadian hostages and held them in questionable conditions until they were eventually able to force a swap. It is now clear that the Chinese government expects certain Chinese executives and corporations to be above both international law and the law of foreign countries in which they operate.
If your country permits Huawei to do business within it's borders, that puts your own citizens at risk of being taken hostage. Let's not kid ourselves that national governments care more about people than economics, but letting foreign countries take your citizens hostage without repercussion can threaten your chances of being reelected.
Thanks to this episode, public opinion in Canada is now overwhelmingly against letting Huawei operate in Canada. Given this and pressure from its allies in the five eyes, it seems almost inconceivable that the Canadian government won't soon ban Huawei from participation in 5G networks.
This episode has also raised questions about permitting the operations of other Chinese corporations that are too closely associated with the Chinese government. e.g. If a Chinese mining corp operating in a foreign country had it's operations shut down for environmental law infractions, would there be reprisals in the form of trade sanctions, etc. from China?
This kind of lawless behaviour is going to have a chilling effect on all commerce with Chinese companies.