Canadian authorities said Wednesday that they have arrested Meng for possible extradition to the United States.
Canadian Justice Department spokesman Ian McLeod said the U.S.is seeking Meng's extradition, but couldn't provide further details about the case because of the publication ban in effect at Meng's request.
A Huawei spokesperson said Meng faces unspecified charges in the Eastern District of NY.
Huawei, for its part, has consistently denied accusations of spying, and responded to the arrest of Meng by saying it complies with "all applicable laws and regulations" where it operates. But the Wall Street Journal reported in April that USA authorities were investigating whether Huawei violated sanctions on Iran, leading the Chinese government to appeal to Washington to avoid any steps that might have damaged business confidence.
Huawei, which sells telecommunications and computer electronics equipment, is the world's second largest maker of smartphones, behind South Korean giant Samsung. China's embassy in Canada has demanded her release.
The U.S. has been investigating the alleged shipment of U.S. -made products to Iran in violation of U.S. laws since 2016.
In targeting Huawei, the U.S.is threatening one of the companies at the heart of Xi's long-term campaign to wrest the lead in future technologies and wean China off a reliance on foreign technology.
The U.S. government has been concerned about Huawei for years because of uncertainty over its relationship with the Chinese government. The U.S. has also banned all governmental agencies from buying or using Huawei phones or equipment.
Britain's BT said on Wednesday it was removing Huawei's equipment from the core of its existing 3G and 4G mobile operations.
The expectation did not keep the price of oil from falling, however, as investors focused on the potential economic disruption from any escalation in the U.S.
In 2011, the American government stopped Huawei from purchasing US server technology company 3Leaf's assets, for national security reasons.
In June, Canada's Globe and Mail newspaper reported that U.S. lawmakers warned the Canadian government that Huawei posed a major cybersecurity risk.
The timing of the arrest could not have come at a worse time for Huawei.
Huawei has managed to achieve significant global market share despite the fact that it is largely shut out of the American market.
In a response, ZTE denied the charges while Huawei insisted it "posed no greater cybersecurity risk than any ICT [Information and Communications Technology] vendor".
The detention of Meng, who takes her family name from her mother and has also used the English first names "Cathy" and "Sabrina", has once again thrown the spotlight on Huawei at a time of heightened global concerns over electronic security.