Ms. Meng, the daughter of Huawei's founder, Ren Zhengfei, serves as the company's CFO and deputy chairwoman.
Huawei is the world's second-largest smartphone manufacturer, and one of China's largest tech firms.
As a result, USA officials have worked to prevent US telecom companies from selling Huawei smartphones and installing Huawei equipment.
In April, the Wall Street Journal reported that Huawei was being investigated by NY prosecutors on suspicion of breaking the Iran sanctions.
"The Chinese side has lodged stern representations with the United States and Canadian side, and urged them to immediately correct the wrongdoing and restore the personal freedom of Ms Meng Wanzhou".
"She is sought for extradition by the United States, and a bail hearing has been set for Friday", Ian McLeod, a department spokesman, said in an email.
Canada has arrested a senior staff member on Huawei's global executive team on suspicion she violated USA sanctions against Iran.
"While we lifted the ban on ZTE, the department will remain vigilant as we closely monitor ZTE's actions to ensure compliance with all USA laws and regulations", Commerce Secretary Wilbur Ross said at the time.
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We apologize for both. "I agree you come for one of us, you come for all of us at this table, hands down", she continued. He also discussed running for politics, admitting if he "had enough to drink one night he would think about it again".
A spokesman for Canada's Justice Department said Wednesday that Meng was arrested in Vancouver on Dec 1.
It also demanded Meng's immediate release.
The US began an investigation in 2016 to ascertain whether or not Huawei has violated American sanctions against Iran.
As there is a publication ban in effect, which was requested by Meng, the department declined to provide any further detail of the extradition.
USA national security officials have said Huawei poses a security risk due to its alleged close links to the Chinese government. "The company believes the Canadian and US legal system will ultimately reach a just conclusion".
New Zealand and Australia have stopped telecom operators using Huawei's equipment in new 5G networks because they are concerned about possible Chinese government involvement in their communications infrastructure.
The news of the arrest broke today.
Huawei itself has been increasingly on the rocks with the USA for the past year.
Canada is yet to take any action against the Chinese company's 5G technology.