On December 1, Canadian authorities arrested Huawei CFO Wanzhou Meng on behalf of U.S. law enforcement officials. The Globe and Mail reported that Meng was to be extradited to the U.S. on the suspicion she violated sanctions against Iran by helping facilitate selling Huawei equipment to the company. She was arrested in Vancouver on December 1. Following a court hearing that concluded on December 11 in Canada, Meng was granted bail.

The bail will release Meng from Canadian custody, at least for now, so that she can live at home (albeit under surveillance) while she awaits her hearing regarding the potential extradition to the U.S. on account of the charges against her that led to her initial arrest.

For its part, Huawei has denied any wrongdoing and stated that the court will reach a "just conclusion." In a statement to Engadget, Huawei said:

Recently, our corporate CFO, Ms. Meng Wanzhou, was provisionally detained by the Canadian Authorities on behalf of the United States of America, which seeks the extradition of Ms. Meng Wanzhou to face unspecified charges in the Eastern District of New York, when she was transferring flights in Canada. The company has been provided very little information regarding the charges and is not aware of any wrongdoing by Ms. Meng. The company believes the Canadian and US legal systems will ultimately reach a just conclusion. Huawei complies with all applicable laws and regulations where it operates, including applicable export control and sanction laws and regulations of the UN, US and EU.

Meng is one of the vice-chairs of Huawei's board and the daughter of company founder Ren Zhengfei. Her arrest and extradition further exacerbates relations between China and the U.S., with the Chinese embassy stating it will "take all measures to resolutely protect the legitimate rights and interests of Chinese citizens."