Chhatrapati
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It is simple things, like if you have pending case you will get arrested, Police in Canada is also part of the Judicial system so they can't let her go.That's what some Hong kongers don't like, so they are protesting, we always do this with many countries including US, but not politically motivated ones.
She is arrested for evading US sanctions. Is it not?
Coming to HK, again extradition works if both countries agree given you have a different system in HK and people have the right to protest. If Canadian people want to end extradition treaties, they can make it work.