Huawei has regained its position as the leading smartphone brand in China for the first time in over four years, surpassing global rival Apple and domestic competitors such as Xiaomi, according to data released Tuesday by the International Data Corporation.

The Shenzhen-based technology giant captured an 18.1% share of the Chinese smartphone market in the second quarter of 2024, shipping 12.5 million units. This marks a significant recovery for Huawei, which has faced numerous obstacles including U.S. export restrictions, Western bans, and a corruption investigation in Belgium.

Overall, China’s smartphone market contracted by 4% year-on-year to 69 million units in Q2, ending a streak of six consecutive quarters of growth.

“Despite the recent US-China trade truce, the broader economic environment presents ongoing challenges, with consumer confidence remaining subdued,” said Arthur Guo, senior research analyst at IDC. “This suggests that a significant uplift in smartphone demand is unlikely in the immediate term, and the market will navigate a more complex landscape in the second half of the year.”

Huawei’s comeback comes amid ongoing U.S.-China tensions, with Washington maintaining concerns that the company’s equipment could be used for espionage—allegations Huawei denies. Since U.S. sanctions in 2019 restricted Huawei’s access to American technology, the company has focused on developing its own components to maintain production.

Meanwhile, Apple fell to fifth place with a 13.9% market share, shipping 9.6 million units. The iPhone maker continues to experience a sales downturn in China, having lost its spot as the country’s top smartphone brand last year to local competitors.

The market shift occurs against a backdrop of China’s economy growing over 5% in Q2, despite ongoing trade tensions stemming from U.S. tariff policies. Huawei’s resurgence highlights its resilience and ability to adapt to geopolitical pressures while capitalizing on strong domestic demand.