The Globe and Mail reported Wednesday that US authorities allege Meng attempted to evade the USA trade embargo with Iran, though StarMetro has not independently verified this claim.
At this time, the department spokesperson can't share more details because Meng requested a publication ban.
The Wall Street Journal reported earlier this year that USA authorities are investigating whether Chinese tech giant Huawei violated sanctions on Iran.
The federal Crown prosecutor handling the case declined to comment outside court on the reasons for Meng's arrest, referring questions to the federal Justice Department.
In April, China appealed to Washington to avoid damaging business confidence following the Wall Street Journal report that US authorities were investigating whether Huawei violated sanctions on Iran amid spiraling technology tensions.
A Huawei spokesman said Wednesday that Ms. Meng was arrested while transferring flights in Canada.
Huawei CFO arrested in Canada for United States ‘for violating Iran sanctions’
The arrest comes amid a trade war between the USA and China.
The arrest comes as the United States has brought a number of legal cases against Chinese technology firms, with accusations such as cyber-security theft and violations of USA sanctions against Iran.
Earlier this year, two US senators wrote to Prime Minister Justin Trudeau warning him that doing business with the Chinese telecom giant would open Canada up to a huge security risk.
Separately, the BBC reported that United Kingdom telco BT will not use Huawei's equipment in its 5G mobile network.
New Zealand and Australia have stopped telecom operators from using Huawei's equipment in new 5G networks because they are concerned about possible Chinese government involvement in their communications infrastructure.
The news comes the same day Britain's BT Group said it was removing Huawei's equipment from the core of its existing 3G and 4G mobile operations and would not use the Chinese company in central parts of the next network.
Trump has threatened to raise tariffs on Chinese goods in response to complaints that Beijing improperly pressures foreign companies to hand over technology.
United Nations chief issues dramatic climate appeal to world leaders
The UN said the extent of climate action must be increased fivefold to limit global warming to the 1.5 degrees Celsius urged by scientists .
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