With tensions continuing to escalate between the US and China, Huawei is reportedly preparing for the worst-case-scenario by developing its own mobile operating system.

According to The South China Morning Post, Huawei has been building an alternative to the Android operating system, a project which will be accelerated in light of the rapidly deteriorating relationship between the US and China. Should Huawei face the same penalties as ZTE, its ambitions to be the world’s premier smartphone manufacturer would be severely dented as it could be left without an effective operating system to power devices.

Last week it was reported the US Department of Justice launched an investigation to see whether Huawei violated US sanctions against Iran. ZTE’s issues started with a similar probe, while the anti-China sentiment in the country combined with suspect activity at ZTE, took the firm down a worrying path. Huawei should certainly be worried about suffering the same fate.

As it stands, Google’s Android and Apple’s iOS are the world’s two dominant operating systems. There have been various attempts to break this strangle-hold, Microsoft’s Windows Mobile OS or Samsung with its Tizen system for example, but none have come close. Considering the tensions between the two nations, Huawei finds itself in a precarious position, with its smartphones and wearable devices dependent on the US Android system.

ZTE is certainly taking the brunt of US aggression at the moment, though Huawei has also been under the spotlight. Numerous reports have been produced pointing the espionage finger at Huawei, and it would surprise few if a chain of events unfolded, leading Huawei to the same position as ZTE; a ban from including any US product or IP in its supply-chain. For the devices business, this would be a disaster unless an alternative operating system could be produced.

As it stands, Huawei is the most popular smartphone brand in China and third worldwide. Progress has been very encouraging in the developed markets, where Chinese brands have traditionally struggled; being banned from using the Android operating system would put an end to this momentum. Sources close to the situation claim this is very much being viewed as worst-case-scenario, as one of the reasons the OS has not been released yet is that is simply isn’t as good as Android.

Worryingly for Huawei is the scrutiny which will be placed on a Chinese OS. While some European countries have confirmed a suspicious eye is watching Huawei, these governments might sleep easier knowing a US firm controls the operating software. Should Huawei (a supposed puppet of the Chinese government to the paranoid) control both the hardware and the software, intelligence agencies could be spurred into a state of panic.