Meng Wanzhou, the chief financial officer of the Chinese telecoms giant Huawei, was granted bail on Tuesday by a Canadian court.
She was arrested on 1 December and could be extradited to the US to face fraud charges linked to the alleged violation of sanctions on Iran.
The detention of the executive had threatened to further complicate relations between the US and China, which Donald Trump has previously threatened with a trade war. China had threatened severe consequences unless Canada released Ms. Meng immediately.
Donald Trump says he could intervene in the case of Huawei executive Meng Wanzhou if it helps to avoid a further decline in US relations with China.
On Tuesday, Justice William Ehrcke, at a hearing in Vancouver, British Columbia, granted bail to Meng, who has been accused of misleading multinational banks about Iran-linked transactions, putting the banks at risk of violating US sanctions.
Ms. Meng, 46, denies any wrongdoing and has said she will contest the allegations
The judge said the executive, the daughter of the firm’s founder, had to pay a bond of C$10 (USD $7.5m) and follow several conditions, including the surrendering of her passports and the wearing of an ankle bracelet.
the move came to prevent the escalation of an international row between China and the US who are in the midst of a trade dispute.