Canadian authorities have arrested Huawei's chief financial officer on suspicion that she violated US trade sanctions against Iran.
According to Meng's official company biography, she joined the company in 1993 and also serves as deputy chairwoman of the board.
Meng Wanzhou, who is the daughter of company founder Ren Zhengfei, has been detained in Vancouver in relation to suspected violations by Huawei of USA sanctions placed on Iran.
In January 2013, Reuters reported that a Hong Kong-based firm that attempted to sell embargoed Hewlett-Packard computer equipment to Iran's largest mobile-phone operator had much closer ties to China's Huawei Technologies than was previously known.
Huawei has not responded to Global News' request for comment.
Sources previously told Reuters that U.S. authorities had been investigating Huawei for allegedly shipping products to Iran in breach of USA sanctions. "The ban was sought by Ms. Meng". Canadian Justice Department press representative Ian McLeod confirmed Wanzhou's court hearing is scheduled for Friday.
Like ZTE, Huawei relies in part on United States technology imports for its products, and per U.S. export regulations, those products are in turn prohibited from being exported to Iran and other restricted nations.
USA lawmakers have also repeatedly accused the company of being a threat to United States national security, arguing that its technology could be used for spying by the Chinese government.
Earlier this year, it barred USA companies from exporting to Chinese telecommunications firm ZTE over violations of the Iranian sanctions, effectively shutting down the firm.More news: 7.0-magnitude quake damages roads in Alaska
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A foreign ministry spokeswoman, Hua Chunying, said then that China hoped the USA would refrain from taking actions that could further undermine investor confidence in the US business environment and harm its domestic economy.
David Mulroney, a former Canadian ambassador to China, said USA and Canadian business executives could face reprisals in China.
The news of the arrest broke today.
It says she was arrested when she was transferring flights in Canada.
Separately, the BBC reported that British telco BT would not use Huawei's equipment in its 5G mobile network.
It comes amid deepening suspicions of Huawei in the United Kingdom and elsewhere.
Huawei overtook Apple earlier this year to move into the No. 2 spot, according to Business Insider.
This November, New Zealand's government banned its major telecommunications company Spark from using Huawei's equipment, which is described to "have a serious national security risk".
Mulroney said Canada should be prepared for "sustained fury" from the Chinese and said it will be portrayed in China as Canada kowtowing to Trump.