Counter-espionage officers in Poland have arrested a Chinese manager working for the tech giant Huawei, and a former Polish intelligence officer who had also worked at the mobile phone company Orange.
"In accordance with the terms and conditions of Huawei's labor contract, we have made this decision because the incident has brought Huawei into disrepute", the statement said.
Polish Internal Affairs Minister Joachim Brudzinski has asked the European Union and North Atlantic Treaty Organisation to coordinate any potential bans on Huawei gear.
Her arrest follows United States efforts to blacklist the company internationally over security concerns.
Past year 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.
The development comes as the U.S.is exerting pressure on its allies not to use Huawei, the world's biggest maker of telecommunications network equipment, over data security concerns.
Poland is Huawei's headquarters for Central and Eastern Europe and the Nordic region. He alleged both suspects "carried out espionage activities against Poland".
According to an English translation of a Polish news report, Weijing W. studied Polish at the Peking University of Foreign Studies and was hired by Huawei in 2006. Further indictments are expected, he said. They will remain in custody for three months.
Poland has arrested a Chinese employee of Huawei and a Polish cyber business specialist on allegations of spying. One of them is Polish while the other one is Chinese.
Poland's counterintelligence agency searched the local Huawei office and the home of the Chinese national, Poland's state-owned broadcaster reported Friday.
It said he also went by the Polish first name of Stanislaw and had previously worked at the Chinese consulate in Gdansk.
National media reported that two people had been arrested, one of whom is reported to be a sales director at the Chinese hardware supplier.
China is highly concerned over the issue, the Ministry of Foreign Affairs' press office said in a faxed response to questions.
The two individuals were arrested on Tuesday following a lengthy investigation, a spokesman for the security services told the BBC.
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.
Huawei's chief financial officer, Meng Wanzhou, was arrested December 1 in Canada on USA charges related to possible violations on trade sanctions on Iran. If the Huawei executive is extradited to the U.S., experts warn USA businesses in China could face retaliation.