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Earlier this year, it barred United States companies from exporting to Chinese telecommunications firm ZTE over violations of the Iranian sanctions, effectively shutting down the firm.

Huawei said it complies with all laws and rules where it operates, including export controls and sanctions of the United Nations, the USA and European Union.

Wanzhou, the deputy chair at the company and the daughter of Huawei founder Ren Zhengfei, was arrested on 1 December in Vancouver at the request of USA authorities. The ban was sought by Meng, who has a bail hearing Friday, he said.

The Globe and Mail reported earlier Wednesday that she was arrested on suspicion of violating US trade sanctions on Iran.

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Canada, Australia and New Zealand were among the nations to ban the use of Huawei's equipment due to security concerns.

Huawei is one of the world's leading makers of telecommunications network equipment.

It is understood a National Intelligence Law passed by China past year that obliges Chinese citizens and companies anywhere in the world to cooperate with its security services was one reason for the block.

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In April, China appealed to Washington to avoid damaging business confidence following the Wall Street Journal report that USA authorities were investigating whether Huawei violated sanctions on Iran amid spiraling technology tensions.

The company's website also lists Meng as its deputy chairwoman and The Associated Press reports that she is the daughter of company founder Ren Zhengfei.

A top executive with a major Chinese tech company has been arrested in Vancouver and is being sought for extradition to the United States.

"We will closely follow the development of the issue and take all measures to resolutely protect the legitimate rights and interests of Chinese citizens", the Chinese Embassy said.

Bowater said BT had noted that Huawei remained "an important equipment provider and a valued innovation partner".

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It has provided products and services in more than 170 countries and has more than 180,000 employees over the world.

"Until we have some clarity around the future we can't make any bold investment decisions", he said.


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