A US-based industry association of global chip companies said that Huawei may be secretly building a shadow network of chip-making facilities throughout China. The Semiconductor Industry Association said this may let the Chinese tech giant, which is sanctioned by the US government, buy equipment and supplies indirectly from US manufacturers.

Huawei’s alleged operations, which the association said is backed by US$30 billion of state funding, comes amid US-China tensions. The company started manufacturing chips last year.