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UPDATE 1-China formally arrests two Canadians on state secrets charges

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BEIJING, May 16 (Reuters) - Chinese authorities have formally arrested on state secrets charges two Canadians detained last year, the government said on Thursday, in what is likely to further increase tension between Ottawa and Beijing.

Businessman Michael Spavor, who worked with North Korea, and former diplomat Michael Kovrig were picked up separately in December, shortly after Canada arrested Huawei Technologies Co Ltd Chief Financial Officer Meng Wanzhou, who faces extradition to the United States.

China has repeatedly demanded Meng be released, and has reacted angrily to extradition proceedings against her in a Canadian court.

"According to Chinese prosecutors' approval, Michael Kovrig, due to being suspected of crimes of gathering state secrets and intelligence for foreign (forces), and Michael Spavor, for being suspected of crimes of stealing and illegally providing state secrets for foreign (forces), have in recent days been approved for arrest according to law," foreign ministry spokesman Lu Kang told a daily news briefing.

China has taken the measures in accordance with the law, he said.

China hoped Canada "will not make irresponsible remarks" about China's law enforcement and judicial proceedings, Lu said.

The Canadian embassy in Beijing did not immediately respond to a request for comment. Canadian diplomats have been allowed to visit the two men in detention.

In March, China accused the two of involvement in stealing state secrets.

China has said it is fully guaranteeing both men's lawful rights. Kovrig also holds Hungarian citizenship.

Kovrig works for the International Crisis Group (ICG) non-governmental organisation which focuses on conflict resolution.

With their formal arrest, they could soon face trial, though it is unclear when that may be.

While Canada says China has made no specific link between the detentions of the two men and Meng's arrest, experts and former diplomats say they have no doubt it is using their cases to pressure Canada.

Meng, 47, is the daughter of Huawei Technologies Co Ltd's billionaire founder, Ren Zhengfei.

She was arrested at Vancouver's airport in December on a U.S. warrant and is fighting extradition on charges that she conspired to defraud global banks about Huawei's relationship with a company operating in Iran.

Meng was released from jail in December on C$10 million ($7.5 million) bail and must wear an electronic ankle bracelet and pay for security guards. She has been living in a Vancouver home that was valued at C$5 million in 2018.

Both she and the company have denied the U.S. charges. (Reporting by Michael Martina; Writing by Ben Blanchard Editing by Darren Schuettler, Robert Birsel)