Canada has announced it will allow the extradition process against Huawei executive Meng Wanzhou to proceed.
She faces a fraud case in the US over alleged breaches of US sanctions on Iran
While Canada's government has now formally commenced the extradition process, the final decision will be made in court.
Ms Meng, Huawei's chief financial officer, was arrested late last year at Vancouver Airport on foot of an extradition request from the US.
She's accused of using an unofficial subsidiary called Skycom to evade US sanctions on Iran from 2009 to 2014.
She's also accused of making public misrepresentations about Skycom by claiming it was separate from Huawei.
Her firm's also accused by the US of stealing trade secrets from T-Mobile.
Ms Meng and the company have denied any wrongdoing.
If she is extradited from Canada, Ms Meng could face prosecution in the US.
Her arrest in December prompted a major diplomatic spat between China and Canada, with Canadian officials accusing China of 'arbitrarily detaining' several of its citizens.
'Authority to proceed'
In a statement today, Canada's justice department confirmed it has issued an 'authority to proceed'.
It means they have now formally started the extradition process.
Officials say they've carried out a "thorough and diligent review of the evidence" in the case, and that the requirements to proceed have been met.
They say: "An extradition hearing is not a trial nor does it render a verdict of guilt or innocence.
"If a person is ultimately extradited from Canada to face prosecution in another country, the individual will have a trial in that country."
Ms Meng, who is out on bail in Vancouver, is due to appear in court on March 6th.