The chief financial officer of Huawei has been arrested in Canada on suspicion that she violated US trade sanctions against Iran.
Wanzhou Meng, also known as Sabrina Meng, is also the deputy chair of Huawei's board and the daughter of company founder Ren Zhengfei.
She was arrested in Vancouver on December 1 and faces extradition to the United States.
The story was first reported by The Globe and Mail and also adds a statement by Justice Department spokesman Ian McLeod.
"She is sought for extradition by the United States, and a bail hearing has been set for Friday," McLeod said. "As there is a publication ban in effect, we cannot provide any further detail at this time. The ban was sought by Ms. Meng."
The Wall Street Journal reported in April that US prosecutors had been investigating whether Huawei violated US sanctions on Iran.
In a statement to The Globe, Huawei said that Ms. Meng faces "unspecified charges in the Eastern District of New York"
"The company has been provided with very little information regarding the charges and is not aware of any wrongdoing by Ms. Meng," the spokesperson said.
"The company believes the Canadian and U.S. legal systems will ultimately reach a just conclusion," Huawei said, and added the company "complies with all applicable laws and regulations where it operates, including applicable export control and sanction laws."
The Chinese embassy in Ottawa has strongly protested Meng's arrest, saying that she has not violated Canadian or US law, thereby demanding her immediate release.
The Chinese tech giant is known for selling smartphones and telecommunications equipment around the world.
The company has been facing scrutiny from the US and other countries on fear that Huawei's products pose a threat to national security.
The arrest of Huawei's CFO could hurt China-Canada relations.
"Her arrest, on suspicion of violating the Iran sanctions, should be seen as a clear signal that Canada is willing to face China's fury to do the right thing," David Mulroney, a former Canadian ambassador to China said in a statement.
Source: Agencies