Huawei's chief financial officer Meng Wanzhou has been dealt a setback by a Canadian court as she tries to avoid extradition to the US to face bank fraud charges.
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Meng, a Chinese citizen, was arrested in December 2018 on a warrant issued by US authorities.
They accuse her of bank fraud for misleading HSBC about Huawei's relationship with a company operating in Iran, putting HSBC at risk of fines and penalties for breaking US sanctions on Tehran.
Meng's lawyers argued the case should be thrown out because Canada did not have sanctions against Iran.
But British Columbia's Superior Court Associate Chief Justice Heather Holmes disagreed on Wednesday, ruling the legal standard of double criminality had been met.
"Ms Meng's approach ... would seriously limit Canada's ability to fulfill its international obligations in the extradition context for fraud and other economic crimes," Holmes said.
The ruling paves the way for the extradition hearing to proceed to the second phase starting in June, examining whether Canadian officials followed the law while arresting Meng.
Meng lawyer Reid Weingarten said his client should "not be a pawn or a hostage" in the China-US relationship.
"Today's ruling in Canada is only the opening salvo in a very long process ... we are confident that ultimately justice will be done," Weingarten said.
Shortly after the ruling was released Meng, 48, arrived at the courthouse but made no comment. Meng says she is innocent.
Australian Associated Press
