Analysts pointed out that the impact on Huawei is "limited" as the Shenzhen-based company has the potential to develop its own system and has been preparing a Plan B for years to counter a potential ban.

"Huawei has been striving to expand its business to better adjust to the global market changes and investing a lot on core technologies to bolster its core competitiveness and gain an edge globally," said Xiang Ligang, director-general of the Information Consumption Alliance.

A PowerPoint published in Chinese social media suggested that professors from Shanghai Jiao Tong University have led the development of Huawei's operating system, which is likely to be named "Hong Meng," referring to the Chinese generation before the universe was formed.

"The system has made a lot of optimization on Linux, an open-source operating system, and has been applied into Huawei's smartphones," said the presentation, which has since been deleted.

Huawei founder Ren Zhengfei had said in an internal briefing that the company should develop its own operating system and chips to counter challenges from external providers.