Canadian authorities have arrested China-based Huawei Technologies' chief financial officer for possible violations of USA trade sanctions related to sales of HP equipment to Iran a decade ago.
According to The Globe and Mail, it is alleged that Meng attempted to evade USA trade sanctions against Iran.
The aim of the Justice Department's investigation is to prevent companies, such as Huawei and ZTE Corp. that may be answerable to the Chinese Communist Party, from gaining access into the USA economy amid allegations of spying on its citizens.
Huawei Technologies, launched in 1987 in Shenzhen China, has been the largest telecommunication equipment producer in the world since 2012.
BBC News reports Meng is also deputy chairman of the board and the daughter of company founder Ren Zhengfei.
This story is developing.
Huawei, in a statement, said the arrest was made on behalf of the U.S.so Meng could be extradited to "face unspecified charges" in the Eastern District of NY.
The US began an investigation in 2016 to ascertain whether or not Huawei has violated American sanctions against Iran.
U.S. Senator Ben Sasse praised the action and said that it was "for breaking U.S. sanctions against Iran".
One of Huawei's top executives was arrested in Canada today, but the move was reportedly made at the request of the USA government.
The arrest, while notable, did not come out of the blue.
USA authorities have been probing Huawei on suspicion that it may have shipped US -made products to Iran and other countries in violation of US export and sanctions laws since 2016, the Globe and Mail reported.
It comes amid deepening suspicions of Huawei in the United Kingdom and elsewhere.
A spokesperson for the Department of Justice Canada confirmed the arrest of Meng via email to CRN and said that there was a "publication ban" imposed by Meng, forcing the agency to withhold more information on the arrest.
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 U.S.is anxious about the extent to which Chinese-made equipment is used in the telecommunications sectors of countries that host American military bases.
Huawei, which sells telecommunications and computer electronics equipment, is the world's second largest maker of smartphones, behind South Korean giant Samsung. Huawei also didn't immediately respond to requests for comment.