National security adviser John Bolton said Thursday he knew in advance about the arrest of a top executive of Chinese telecom giant Huawei, an incident that could reignite the trade dispute between the U.S. and China.

"I knew in advance. This is something that we get from the Justice Department. And these kinds of things happen with some frequency," Bolton said in an interview with NPR.

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China has demanded the release of Meng, the chief financial officer and daughter of the founder of Huawei, the world's largest supplier of telecom equipment. She faces potential extradition to the U.S.

The company has become the target of some U.S. agencies over concerns it is too close to the Chinese government and is involved in activities like forced technology transfers and intellectual property theft.

"So not respecting this particular arrest, but Huawei is one company we've been concerned about. There are others as well. I think this is going to be a major subject of the negotiations that President Trump and President Xi Jinping agreed to in Buenos Aires," Bolton said Thursday.

Stock markets dropped on Thursday amid growing doubts about the strength of the truce between Trump and Xi. Before Meng's arrest, investors were spooked by Trump's threat that he is a "Tariff Man" and discrepancies between Washington and Beijing about what was agreed to at the summit.