That is in stark contrast with ZTE, the Shenzhen-based telecommunications equipment maker that is both Huawei's competitor and comrade in the global technology race.

ZTE has also been faced with similar heat, albeit more damaging as the Department of Commerce hit it with a seven-year ban from using any software or hardware components that are exported from the United States - effectively stopping its smartphone business in the country.

China has called on Washington to avoid damaging business confidence following a report US authorities are investigating whether Chinese tech giant Huawei violated sanctions on Iran. Neither the Justice Department nor Huawei have confirmed that the investigations are taking place.

On its part, Huawei says that it complies with all applicable laws and regulations in the countries where it operates. Now ZTE has spoken out on the subject, saying that the ban will "severely impact" its survival going forward.

Since at least 2016, United States authorities have been probing Huawei's alleged shipping of US-origin products to Iran and other countries in violation of U.S. export and sanctions laws, two of the sources said.

Republican Senators Marco Rubio and Tom Cotton have introduced legislation that would block the USA government from buying or leasing telecommunications equipment from Huawei or ZTE, citing concern that the Chinese companies would use their access to spy on U.S. officials. Although the USA government could use it as evidence to launch further investigations into Huawei. That is a crippling blow to ZTE's smartphone business since it could leave them without the ability to source Snapdragon chipsets and the Android operating system.

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