Huawei's CFO arrested in Canada, faces extradition to United States

Meng Wanzhou, also known as Sabrina Meng and Cathy Meng, was apprehended in Vancouver on December 1, according to Canadian Justice Department spokesman Ian McLeod. In addition to her role as CFO, Meng serves as deputy chairwoman of Huawei's board. She's the daughter of Huawei founder Ren Zhengfei.

Meng "is sought for extradition by the United States, and a bail hearing has been set for Friday," McLeod said in a statement, which was first reported by The Globe and Mail.

McLeod said the Canadian Justice Department can't share details of the case. Meng was granted a publication ban after a judge agreed to bar both police and prosecutors from releasing information about the case.

Meng Wanzhou, CFO of Huawei

A Huawei spokesperson said Meng was detained by Canadian Authorities on behalf of the United States when she was transferring flights in Canada. Huawei said she faces unspecified charges in the Eastern District of New York. The Wall Street Journal reported in April that the US Justice Department was investigating whether Huawei violated US sanctions on Iran.

"The company has been provided 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 US legal systems will ultimately reach a just conclusion. Huawei complies with all applicable laws and regulations where it operates, including applicable export control and sanction laws and regulations of the UN, US and EU."

The Chinese company, which sells smartphones and telecommunications equipment around the world, has been facing increased scrutiny in the United States and other countries, where officials have warned of potential national security risks from using Huawei products. The United States is concerned that the Chinese government could be using Huawei's networking technology to spy on Americans.

Huawei told CNN Business last month that its equipment is trusted by customers in 170 countries and by 46 of the world's 50 largest telecommunications companies.