What’s next for Huawei?

U.S. officials are poised to formally request that Canada extradite Meng Wanzhou a day after the Justice Department laid out its case against her and Huawei, the Chinese telecommunications company she helps lead. Ms. Meng was arrested nearly two months ago at the behest of the U.S. and is under house arrest in Vancouver.

Huawei denied the charges, and China’s Foreign Ministry called for the release of Ms. Meng.

But the developments could further damage relations between the U.S. and China, leaving Huawei — and Beijing — with very few options for responding or retaliating.

The allegations: The indictments say Ms. Meng and Huawei defrauded four large banks — possibly including HSBC — into clearing transactions with Iran in violation of international sanctions. Prosecutors also claim that the company destroyed evidence, moved potential witnesses back to China and tried to steal a T-Mobile robot named Tappy that is used to test smartphones.