According to The Globe and Mail, it is alleged that Meng attempted to evade US trade sanctions against Iran.
The US began an investigation in 2016 to ascertain whether or not Huawei has violated American sanctions against Iran.
A foreign ministry spokeswoman, Hua Chunying, said then that China hoped the USA would refrain from taking actions that could further undermine investor confidence in the US business environment and harm its domestic economy.
Authorities in Canada have arrested Meng Wanzhou, chief financial officer of Chinese tech giant Huawei.
He said Meng faces extradition to the US, and that a bail hearing has been set for Friday.
McLeod says further details can not be provided on the case because a publication ban is in effect at Meng's request.
The Canadian Department of Justice said Meng Wanzhou, who also goes by the name Sabrina Meng, was collared by police in Vancouver over the weekend at the request of Uncle Sam, which hopes to haul her into a court in the States.
Canadian law enforcers have arrested a top executive at Chinese telecommunications equipment maker Huawei, heeding a request from the US. Its devices have come under scrutiny from USA authorities over spying fears, and the arrest of its CFO has the potential to further inflame tensions between the two countries amid a mounting trade war.
The Wall Street Journal reported in April that USA authorities had opened an investigation into suspected violations of Iran sanctions by Huawei.
According to Meng's official company biography, she joined the company in 1993 and also serves as deputy chairwoman of the board.
Meng, 46, has been the CFO of Huawei Technologies since 2011 and vice chair of the company since March 2018.
But Huawei said in a statement that it had been provided "very little information regarding the charges" and was not aware of any wrongdoing by Meng.
David Mulroney, a former Canadian ambassador to China, said US and Canadian business executives could face reprisals in China. And perhaps more importantly, USA officials have urged other countries to ban telecom companies from purchasing Huawei equipment. Despite being essentially barred from the critical U.S. market, Huawei surpassed Apple to become the world's number two smartphone maker in the second quarter of this year and has market leader Samsung in its sights.
In May, the Pentagon banned the sale of Huawei phones on military bases.
USA officials have argued that the company's equipment could create a backdoor into US telecom networks for Chinese spies.
Although Huawei sought to distance itself from Skycom, investigative journalists found close connections between the two companies. Huawei has denied the links.