Canada has said that extradition proceedings against Huawei's Meng Wanzhou can proceed.
The Huawei Chief Financial Officer is facing charges in the US for a number of charges related to alleged breach of sanctions against Iran.
Meng has been under house arrest since being arrested in Canada in December.
The Canadian Department of Justice has now decided that the extradition process can go ahead, although the matter is now passed on to the courts which will ultimately decide what happens to Meng.
The US has filed bank fraud and conspiracy to commit bank fraud, wire fraud and conspiracy to commit wire fraud charges against Meng and Huawei in relation to alleged attempts to avoid sanctions preventing technology being sold to Iran.
Both Huawei and Meng have denied the allegations.