Huawei Chief Financial Officer Meng Wanzhou flew home to China on Friday after reaching an agreement with United States prosecutors to end the bank fraud case against her, relieving a point of tension between China and the US.

Within hours of the news of the deal, two Canadians who were arrested shortly after Meng was taken into custody in December 2018 were released from Chinese jails and were on their way back to Canada. Beijing had denied that their arrests were linked.

The years-long extradition drama has been a central source of discord in increasingly rocky ties between Beijing and Washington, with Chinese officials signalling that the case needed to be dropped to help end a diplomatic stalemate.

The deal also...