Huawei chief financial officer Meng Wanzhou arrived in China on Saturday, ending her near three-year US extradition fight, the same day two Canadians detained by Beijing for more than 1,000 days returned home, potentially paving the way for improved ties between China and the two western allies.

Meng, the daughter of Huawei Technologies founder Ren Zhengfei, was allowed to go home after reaching an agreement with US prosecutors on Friday to end a bank fraud case against her.

The extradition drama has been a central source of discord between Beijing and Washington, with Chinese officials signalling that the case had to be dropped to help end a diplomatic stalemate.

Two Canadians detained by...