Canadian authorities in Vancouver have arrested Huawei Technologies Co.'s chief financial officer at the request of the US government for alleged violations of Iranian sanctions, the latest move by Washington to crack down on the Chinese cellular-technology giant.
According to an official statement from a Canadian Justice Department spokesperson, the USA government is seeking to extradite Meng from Canada to the United States.
The statement said Meng sought, and was granted, a publication ban which prevents the department from releasing further details about the arrest.
United States prosecutors were investigating whether Huawei violated United States sanctions on Iran.
Meng, daughter of the founder of the massive company, is being held under a provisional arrest warrant issued under the Extradition Act.
A spokesman for the US Justice Department in the Eastern District of NY - which Huawei said had brought the charges - declined to comment.
USA prosecutors in NY have been investigating whether Huawei violated US sanctions in relation to Iran.
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A Huawei spokesman said Wednesday that Ms. Meng was arrested while transferring flights in Canada.
The New York Times meanwhile said that the company had been subpoenaed by the Commerce and Treasury Departments over alleged violations of Iran and North Korea sanctions.
The arrest comes amid a trade war between the United States and China. "Americans are grateful that our Canadian partners have arrested the Chief Financial Officer of a giant Chinese telecom company for breaking USA sanctions against Iran".
Australia and New Zealand have already turned down Huawei's offer to supply 5G equipment to telecommunication companies, citing security risks.
In August, U.S. president Donald Trump signed an act to ban the use of Huawei components or services that are "essential" or "critical" to the systems they are used.
Wanzhou Meng, Huawei's chief financial officer, was reportedly arrested in Canada on Saturday. BT still planned to use Huawei phone mast antennas and some other products.
The decision was because of the technology, not because it was a Chinese company, said Andrew Little, Minister Responsible for the GCSB.