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Huawei Technologies, already mired in a United States case alleging sanctions violations, faces new worldwide scrutiny after Poland arrested a company employee and a former Polish security agent and accused them of spying for China.

Though the Canadian government launched a security review of Huawei's 5G technology a year ago, it is still a major supplier of telecommunications equipment in Canada and at least two major carriers have said they plan to test the company's 5G technology in small-scale pilots. It said he also went by the Polish first name of Stanislaw and had previously worked at the Chinese consulate in Gdansk.

Huawei, in turn, said in a statement that it is "aware of the situation" and that it has "no comment for the time being". He allegedly conducted high-level espionage on behalf of China. Huawei has repeatedly said it's unaware of any wrongdoing by Meng.

What do we know so far?

They also arrested a Polish employee of the local subsidiary of European communications giant Orange.

The Chinese national is an employee of Huawei, Poland's public TV channel TVP said.

The agency did not immediately respond to Reuters' requests for a response to the reports.

A second man, Piotr D, was a former employee of the country's security services and had been working in telecoms.

The U.S. reportedly said Meng deceived global banks to funnel transactions between Huawei and Iran.

A federal court has ruled the men can be held for three months as the case is investigated further. If found guilty, the two face up to 10 years in prison.

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While one was identified as the Huawei employee, the other was described as a Polish citizen and former security official.

Huawei is a leader in the development of next-generation "5G" mobile networks and a key player in building them in Europe.

It added: "Huawei complies with all applicable laws and regulations in the countries where it operates, and we require every employee to abide by the laws and regulations in the countries where they are based". The homes of the men were also searched.

Why are there concerns about Huawei?

This is the latest in a long line of legal woes and worldwide security concerns surrounding the Chinese-owned communications company, even as Prime Minister Joseph Muscat insists on pushing forward with a deal with the company for Malta.

As of 2017, companies under Chinese law are required to "support, co-operate with and collaborate in national intelligence work".

Meng is the daughter of Huawei founder Ren Zhengfei.

As a result, critics argue China may be using Huawei as a proxy to help hack attacks, eavesdrop on conversations or gain high-level access to sensitive networks.

The arrests came amid growing concerns shared by European Union institutions and governments across the world about the activities of Huawei on their territory.


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