A senior executive of Chinese tech giant Huawei is facing allegations of fraud by using a subsidiary to violate US trade sanctions against Iran in a case that shook world stock markets this week.
Canada is one of more than 100 countries that have an extradition treaty with the United States, requiring it to cooperate with US Department of Justice requests to hand over suspects.
Ms Meng's lawyer David Martin said the evidence presented does not prove she broke either USA or Canadian law.
It is also one of the leading sellers of smartphones.
The Canadian prosecutor said this was untrue.
Meng's bio on the company website says she joined in 1993 and held various positions across the company, including director of global accounting and CFO of Huawei Hong Kong. Meng is accused to have previously insisted the two were separate companies.
"Well, I think the violations of the Iran sanctions are certainly of major concern to the Trump administration..."
The U.S. sees Huawei and smaller Chinese tech suppliers as possible fronts for Chinese spying and as commercial competitors.
He also responded to the idea that Meng could be found guilty in Canada for being in breach of sanctions the United States has imposed on Iran. An export ban of U.S. components to the firm was eventually lifted amid a round of bilateral trade negotiations.
A Huawei spokesman declined to comment on Thursday before Meng's court appearance and said that Wednesday's statement still stands.
In the UK, BT Group announced this month it is removing Huawei equipment from its 3G and 4G mobile operations, and will not be using Huawei technology in its 5G network.
The United States and Australia, both members of the Five Eyes intelligence alliance that also includes Canada, New Zealand, and the UK, have banned Huawei from their 5G networks-the next generation in wireless technology.
Larry Kudlow, director of the White House's National Economic Council, told CNBC he did not believe Meng's arrest would "spill over" into the trade talks with China. "She would not embarrass China itself", he said, adding that her husband and daughter were in Vancouver.
"The bigger picture here is extremely promising", he tried to reassure, citing the chemistry between Trump and Chinese President Xi Jinping.
Gibb-Carsley said the Attorney General opposes Meng's release on bail. A spokesman for China's Foreign ministry, Geng Shuang, says that neither the USA nor Canada has provided the country with evidence that the executive has committed a crime.
"We have made solemn representations to Canada and the USA, demanding that both parties immediately clarify the reasons for the detention, and immediately release the detainee to protect the person's legal rights", he added.