A spokesman for Canada's justice department said Meng Wanzhou was arrested in Vancouver on December 1 and is sought for extradition by the U.S.
In a statement issued exclusively to the News from Huawei's corporate head office, the company explained how Meng was "provisionally detained by the Canadian authorities on behalf of the United States of America, which seeks the extradition of..."
"As there is a publication ban in effect, we can not provide any further detail at this time". The ban was sought by Meng, who has a bail hearing Friday.
The report said the United States had been keeping a close eye on Huawei's alleged shipping of USA products to Iran and other countries in violation of sanction laws.
Canadian authorities for their part are not providing any details beyond the arrest, and various US news organizations have been unable to get a comment from US Department of Justice officials.
He declined to say more about the case, citing a publication ban requested by Ms Meng and ordered by the courts.
The Globe and Mail reported earlier Wednesday that she was arrested on suspicion of violating US trade sanctions on Iran.
A Huawei spokesman said Wednesday that Ms. Meng was arrested while transferring flights in Canada.
Meng's arrest comes as Ottawa and Beijing have been engaged in exploratory talks on a free trade agreement for the past two years, which would be the first deal of its kind between China and a western country.
Huawei is one of the world's largest telecommunications equipment and services providers. "The company believes the Canadian and USA legal system will ultimately reach a just conclusion".
In a brief announcement released today, Canada's Department of Justice has announced that it has arrested the Chief Financial Officer of Huawei, Meng Wanzhou.
The U.S. government has been concerned about Huawei for years because of uncertainty over its relationship with the Chinese government.
The report said existing Huawei equipment at the firm's current 3G and 4G networks would also be removed.