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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.

According to The Globe and Mail, it is alleged that Meng attempted to evade US trade sanctions against Iran. American prosecutors are seeking to have her moved to the U.S. as it investigates whether the company broke trade sanctions against Iran.

The arrest could drive a wedge between China and the United States just days after President Donald Trump and President Xi Jinping held a meeting in Argentina where they agreed to steps to resolve a brewing trade war.

The chief financial officer of Chinese telecommunications giant Huawei has been arrested in Canada at the request of the United States over alleged Iran sanctions violations. The ban was sought by Meng, who has a bail hearing Friday.

A Huawei statement said Meng, who also has gone by the English names Cathy and Sabrina, was detained when she was transferring flights in Canada.

The federal Crown prosecutor handling the case declined to comment outside court on the reasons for Meng's arrest, referring questions to the federal Justice Department.

The investigation into Huawei is similar to that which led to the near-downfall of its domestic competitor, Chinese smartphone maker ZTE. Its devices have come under scrutiny from United States 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.

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Meanwhile unconfirmed reports surfaced in April that the U.S. was investigating Huawei for possibly violating Iran export bans, a scenario that got fellow Chinese firm ZTE into significant trouble earlier this year.

According to Meng's official company biography, she joined the company in 1993 and also serves as deputy chairwoman of the board. "The company believes the Canadian and U.S. legal systems will ultimately reach a just conclusion".

US telecommunications firms fear that partnering with Huawei by allowing it to sell their smartphones would anger the federal government and jeopardize future contracts. Huawei has denied the links.

U.S. Sen. Ben Sasse, a member of the Senate Armed Services and Banking committees, said China is working to undermine U.S. national security interests.

The U.S.is anxious about the extent to which Chinese-made equipment is used in the telecommunications sectors of countries that host American military bases.

Huawei overtook Apple earlier this year to move into the No. 2 spot, according to Business Insider.