Huawei is rumored to be developing a smartphone running a self-developed mobile operating system operating on a self-developed system-on-a-chip (SOC).
GizmoChina has reported Chinese news rumors that Huawei has been working on the system for three years. The sources indicate that Huawei's smartphone OS will be a standalone system.
But if the rumors are accurate, they come at an interesting time, as Huawei is rumored to be a possible new partner for Google's next flagship Nexus Android smartphone.
Fellow Chinese handset maker Xiaomi has meanwhile taken the first steps towards selling its wares in the US and European markets. The company has set up a new online store catering to customers in the US, UK, France and Germany.
But the store initially only sells accessories and not the company's smartphones, and Xiaomi said smartphones will not be included in the line-up.
Xiaomi is a rapidly-growing smartphone vendor despite currently only selling its devices in Asia. The company has launched in markets including China, Hong Kong, Singapore, Indonesia, India, Taiwan and Malaysia.
In April, the company earned a Guinness World Record for selling 2.1 million handsets in a single day.