What happened: After a Huawei employee and a former Polish security official were arrested on spying charges in Poland last week, Huawei may face new restrictions in the European country. A senior government official said on Sunday that Poland might consider banning public bodies from using the company’s products. It could also put further limits on enterprises considered to be security threats. On Saturday, Huawei said it had fired the arrested employee, and that his “alleged actions have no relation to the company.”
Why it’s important: Although the specific allegations against the former Huawei employee have yet to emerge, the case certainly doesn’t help the company’s current international public relations crisis. Based on claims that Huawei used a front company to violate Iran sanctions, the US had CFO Meng Wanzhou arrested in Canada and is contemplating banning companies from using Huawei products. The telecommunication company’s goal of deploying 5G networks worldwide has also taken a blow after Australia, New Zealand, and other countries have forbidden the use of its network gear due to security concerns. If the trend continues, the Chinese company may be forced to curtail much of its plans to expand overseas and focus on friendlier markets instead.