Counter intelligence services in Poland have arrested the sales director of Huawei on charges of spying while the local offices of the Chinese company were raided and searched, according to reports in the Polish media.
The offices of both Huawei and Orange Polska have been searched by Poland's Internal Security Agency.
The U.S. criticism has led to a number of Western countries and companies to review whether they should allow Huawei's equipment to be used in their telecoms networks. The agency did not immediately respond to Reuters' requests for comment.
Orange Polska worked with Huawei past year on introducing the latest fifth-generation, or 5G, wireless network in the country of 38 million.
The AP wrote that the arrest of the Huawei employee is "a fresh sign that a U.S. dispute with China over its ban on the company is spilling over to Europe, Huawei's biggest foreign market". Her arrest sparked a surge of patriotism in China with companies encouraging staff to buy Huawei smartphones. The person has yet to be named by Poland officials, but WSJ's sources claim that the man is Weijing Wang, and is known as Stainslaw Wang in Poland. If convicted, the men could face up to 10 years in prison.More news: Russian lawyer at Trump Tower meeting charged in unrelated case
"I am not aware of any significant cooperation of Polish agents with foreign agencies in this investigation, though it is possible that there was some involvement, Polish security services are in regular contact with their foreign partners", said Stanislaw Zaryn, spokesman for Polish Security Services. Various countries, including the Britain, France, Germany, Norway, have publicly raised concerns about using Huawei equipment for next-generation mobile networks. "We have no comment for the time being".
The US government alleges that Meng helped the company dodge sanctions on Iran.
The detention comes after Canadian authorities arrested Huawei CFO Meng Wanzhou in Vancouver in December 2018 at the request of U.S. law enforcement officials. The company said it abides by applicable laws wherever it operates and expects employees to do the same.
China is highly concerned over the issue, the Ministry of Foreign Affairs' press office said in a faxed response to questions. A spokesperson for Orange Polska told NPR that the company was cooperating with authorities. US prosecutors have accused her of misleading banks about transactions linked to Iran, putting the banks at risk of violating USA sanctions.
This refusal to use Huawei's products come from the belief that doing so would pose "significant risks to national security" and potentially provide sensitive information back to Beijing through "backdoors" installed in Huawei products.