Is Meng being used as a pawn by the US? Probably.The fact remains we have an extradition treaty with the USA and these actions were initiated by the US Justice Department. Further, as Mike pointed out, at the end of the day we will always side with the USA over China.
I have friends who live in China who are in absolute denial about what China really is and how Chinese business works. Corruption, bribery, collusion, lying, misleading and cheating, cheating, cheating.
Would it be surprising to find out that a Chinese company was selling to the Iranians or selling their phones through their quasi state owned smartphone company infected with Chinese government spyware? Frankly, it would be surprising if this wasn't the case. We know the Chinese have spies in North America. There are undoubtedly many in Victoria.
I have an associate who worked for a Chinese company that was illegally importing Chinese steel in violation of US steel tariffs. The Chinese are shady, shady, shady. There is no "law" in China. It's all about who you know and whose palms you can grease.