BEIJING (AP) — Chinese tech-giant Huawei’s reputation has been repeatedly attacked by the United States and others over allegations of Communist Party control.

Now its vaunted status at home has taken a blow over an ex-employee’s report that he was thrown in jail for eight months on extortion charges after attempting to negotiate a severance package.

Internet users and even the state media have called the company hypocritical for having an employee arrested on what turned out to be spurious allegations, while enjoying the backing of Chinese and their government.

Huawei responded Monday to the allegations by Li Hongyuan, who was released without charge, by saying it had the “right and the duty” to report suspected illegal behavior, but that it supported Li’s right to seek legal recourse, including by suing the company.