AT&T walked away from a deal to sell the Huawei smartphone, Mate 10, to customers in the United States, however, Huawei has also confirmed that it will not sell its flagship Mate 10 Pro smartphone in the US via AT&T, but it would still release "new products" in U.S.
But that won't stop Huawei from selling the Mate 10 Pro online and at U-S stores, starting in February. But according to The Wall Street Journal, the carrier backed out of the deal without any explanation.
The reasons of AT&T's shift were not so clear. Their reason, USA lawmakers expressed concerned about potential ties between Huawei and the Chinese government.
The letter to FCC Chairman Ajit Pai, which was signed by 18 lawmakers, noted concerns about Chinese companies in the USA telecommunications industry.
OnePlus is one of the most popular smartphone makers among hardcore Android fans.
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It's awkward timing for Huawei, which showed off the Mate 10 Pro at the tech show CES this week. But it has never managed to crack the U.S., and the firm will have to rethink its expansion plans after this latest blow.
"The US market is a unique challenge for Huawei, and although Huawei Mate 10 Pro will not be sold by US operators, we remain committed to this market now and in the future", says the official statement of Huawei. Gal Gadot will be Huawei's first Chief Experience Officer. I think is a quite big loss for us and also for carriers.
The refusal is the latest example of a Chinese company struggling to develop its U.S. business.
A Republican lawmaker introduced legislation this week that would bar the federal government from contracting with firms that use equipment produced by Chinese telecommunications firms Huawei and ZTE, citing spying concerns.
A representative of Huawei said on Thursday that they believe the move to protect their intellectual property rights can help promote the healthy and sustained development of the science and technology industry.
Yet Huawei appeared shut out of the United States six years ago after congressional investigators determined its equipment could be used for spying or crippling the USA telecommunications network, the Journal reported.