Huawei's arrested CFO is the daughter of company founder Ren Zhengfei.
In January 2013, Reuters reported that a Hong Kong-based firm that attempted to sell embargoed Hewlett-Packard computer equipment to Iran's largest mobile-phone operator had much closer ties to China's Huawei Technologies than was previously known.
The U.S. Justice Department didn't immediately respond to a request seeking comment.
Wanzhou Meng has reportedly been arrested by Chinese authorities on suspicion of violating the US's trade sanctions on Iran.
Justice Department spokesman Ian McLeod says in an email that Wanzhou Meng was arrested Saturday.
Canada has arrested a senior staff member on Huawei's global executive team on suspicion she violated United States sanctions against Iran.
Huawei said its relationship with Skycom was "a normal business partnership", and said its business in Iran was in compliance with all applicable laws and regulations.
In 2011, the American government stopped Huawei from purchasing US server technology company 3Leaf's assets, for national security reasons.
The arrest of Wanzhou also adds pressure on Huawei, which has faced global backlash, with a number of nations banning the use of Huawei gear for 5G rollouts. "The company believes the Canadian and U.S. legal systems will ultimately reach a just conclusion", it said.
The arrest comes as the USA has brought a number of legal cases against Chinese technology firms, with accusations such as cyber-security theft and violations of U.S. sanctions against Iran. Mark Warner conveyed "grave concerns" over the possibility that the Chinese government might be using Huawei equipment to spy on and interfere with foreign governments.
Mr Little won't reveal what significant national security risks Huawei poses saying the information was classified.
Separately, the BBC reported that British telco BT would not use Huawei's equipment in its 5G mobile network.
Last week, New Zealand's Government Communications Security Bureau (GCSB) rejected a proposal from Spark under which it would have used network access equipment from Huawei to build a 5G network, which it wants to have running in 2020.
Huawei itself has been increasingly on the rocks with the United States for the past year.
The Chinese Embassy in Canada, however, is kicking up a diplomatic fuss.