Huawei's chief financial officer faces charges over an alleged conspiracy to defraud banking institutions.
The 46-year-old chief financial officer of Chinese telecom company Huawei now faces extradition to the USA, where she is likely to be charged with trying to evade US sanctions on Iran.
The heads of six USA intelligence agencies, including the CIA, FBI, and NSA, have warned against using Huawei products due to security concerns.
Crown counsel told a court in Vancouver the U.S.is seeking Meng's extradition for offenses linked to violations of a company called Skycom.
The arrest, revealed by Canadian authorities late on Wednesday, was part of a USA investigation into an alleged scheme to use the global banking system to evade American sanctions against Iran, sources say.
She was arrested in Vancouver on December 1, and is sought for extradition by the United States.
According to a CNN report, the USA is claiming that Meng "covered up" violations of sanctions on Iran.
CNN, quoting an unnamed official, said the United States saw the arrest as providing leverage in US-China trade talks - although White House trade advisor Peter Navarro has denied any link to the dialogue.
According to Reuters, Huawei tried to obstruct the investigation by moving out of the U.S. any Chinese national employees who may be potential witnesses regarding company's operations in Iran.
Huawei said on Wednesday that "the company has been provided very little information regarding the charges and is not aware of any wrongdoing by Ms Meng".
The Canadian prosecutor said this was untrue.
"We hope that Japan can provide a fair competitive environment for Chinese companies operating in Japan, and avoid doing anything that harms mutual trust and cooperation", Geng said. If freed, her lead lawyer said, she plans to live in one of her two Vancouver properties with her husband and two school-aged children, who lived in the city from 2009 to 2012 while her husband pursued a master's degree at a local university.
"I think it is going to be very important that they say that these are the relevant laws, that they try to remove politics from this as much as possible, whatever the exact specifics of the case are", Balding said. Fleeing would cause Meng to lose "face", Meng's lawyer said.
Huawei was founded to sell phone switches but it is now the world's biggest supplier of network gear for phone and internet companies.
Several reporters from the US and Canadian media organizations tweeted details of the accusations after the court lifted a publishing ban that had been in place since Meng's arrest.
Huawei's affordable smartphones have made strong inroads in the developing world, but the company has faced repeated setbacks in major Western economies over security concerns.
While it appears that Meng's arrest does not pose an immediate, existential threat to the trade truce, there are longer-term risks to the relationship. Meng is also known by the names Sabrina Meng and Cathy Meng.
Chinese state media have argued that the United States was abusing the law to hurt Huawei's global reputation.