Chinese state media on Sunday said that Huawei is testing a smartphone backed by its homegrown HongMeng operating system.
The government said the device could go to market by the end of 2019.
Communist Party of China-aligned tabloid Global Times said the device would be priced at around $288.
HongMeng is said to be "an alternative to Google's Android OS."
The US Department of Commerce added Huawei to a trade blacklist in May.
