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Chinese telecom giant Huawei has fired a Chinese employee who was arrested in Poland over espionage allegations, saying he had harmed the company's global reputation, a state-run newspaper said Saturday.

The development comes as the U.S.is exerting pressure on its allies to block Huawei, the world's biggest maker of telecommunications network equipment.

During his time at Huawei, he attempted to create a favourable reputation for the Chinese company in Canada and to dispel worries that it is closely connected to the Chinese government.

While the details of their alleged espionage have not yet been made public, a spokesman for Poland's security services has told Reuters that the allegations are related to individual actions, not directly related to Huawei.

State TV identified the Pole as Piotr D., and said he was a high-ranking employee at the Internal Security Agency until 2011, where he served as deputy director in the department of information security.

After both suspects were reportedly detained by the ABW earlier this week, the Warsaw District Court ruled on Thursday that the two should remain behind bars for three months.

Huawei complies with "all applicable laws" in countries where it operates and requires employees to obey them too, said the company statement.

Last year, The Australian newspaper reported officials in the land "Down Under" had received reports about Chinese spies using Huawei to infiltrate a "foreign network".

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Huawei, in turn, said in a statement that it is "aware of the situation" and that it has "no comment for the time being".

The Chinese foreign ministry expressed grave concerns over the incident and urged Poland to protect the lawful rights of the Chinese detainee.

The two men were arrested on Tuesday and are suspected of having "worked for Chinese services and to the detriment of Poland", said Polish special services spokesman Stanislaw Zaryn. The US alleges that its chief financial officer, Meng Wanzhou, conspired to defraud banks to unwittingly clear transactions linked to Iran.

A year ago it held talks with Poland's government about setting up a science-and-technology center near Warsaw, and is working local units of French mobile operator Orange SA and Germany's Deutsche Telekom to set up fifth-generation, or 5G, wireless networks.

Australia and New Zealand have also enacted similar bans, leaving Canada the only country in the "Five Eyes" intelligence network not to take steps against the Chinese firm.

Meng's December 1 arrest infuriated China, which warned Canada of "serious consequences". That makes Huawei the second largest smartphone vendor in Poland.

Huawei is a Chinese telecommunications company that is viewed by United States government officials as a national security risk. Counterintelligence officers also collected physical documents and electronic data from the local offices of Huawei and telecom provider Orange.

Poland's internal affairs minister, Joachim Brudzinski, called for the European Union and North Atlantic Treaty Organisation to work on a joint position over whether to exclude Huawei from their markets.