Canada could see the end of a nasty diplomatic dispute with China if the United States reaches a deal to release a Huawei executive from house arrest in Vancouver, but the affair shows that without the heft of its southern neighbor, Canada has no bargaining power with Beijing.

And even if Huawei Technologies Co. Chief Financial Officer Meng Wanzhou does return to China, relations between China and Canada still face major challenges.

Shortly after Meng was picked up on a U.S. arrest warrant in December 2018, China detained two Canadian men — Michael Kovrig and Michael Spavor — who now face spying charges.