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 US sanctions against Iran, people familiar with the probe told Reuters.
A Chinese telecommunications executive is being accused of fraud by the US government, which wants Meng Wanzhou extradited from Canada to face the charge.
A top Chinese telecommunications executive facing possible extradition to the United States appeared in court Friday as she sought bail in a case that has rattled markets and raised doubts about the U.S. being able to reach a truce in its trade war with China.
The news of Meng's arrest has roiled global stock markets on fears it could escalate a trade war between the United States and China after a truce was agreed last week between President Trump and China's leader Xi Jinping.
He said Meng's personal integrity would not allow her to go against a court order, and that she would not embarrass her father and company founder by breaching such an order. The prosecutor says she assured banks that Huawei and Skycom were separate companies but he says the USA contends that Skycom is Huawei.
Freeland highlighted McCallum's elevated diplomatic status as a former Liberal cabinet minister, and characterized his conversation with the Chinese as positive. Trudeau said at the time that he had not been in contact with China or its ambassadors about the case, CBC reported. "And he has assured China that due process is absolutely being followed in Canada and consular access for China to Ms. Meng will be provided, and that we are a rule-of-law country, and we will be following our laws as we have thus far in this matter, and as we will continue to do".
In a presentation to one bank, Meng allegedly described her company's relationship with SkyCom as a "normal business operation" and claimed that although Huawei had divested itself of a stake in SkyCom. A Canadian official authorized her arrest in November.
Huawei has become the world's biggest supplier of equipment used by phone and internet companies.
The U.S. has led a charge to ban the use of Huawei products among its allies, particularly the Five Eyes intelligence-sharing network that also includes Canada, Australia, Britain and New Zealand.
Earlier this week, Canadian officials said Ottawa was continuing to review Huawei's technology for use in upcoming fifth generation networks.