The development marks a growing awareness of national security concerns in the United States, that companies will find hard to bridge regardless of their looks and features. It is to be seen how this will effect Huawei’s market share in the U.S.

As per sources familiar with the matter at hand, AT&T Inc, has chosen not to sell smartphones by Chinese smartphone maker Huawei Technologies Co Ltd.

A source familiar with the matter at hand disclosed that AT&T held talks with Huawei but backed away from a deal in the wake of security concerns.

It is to be seen how this will impact Huawei, the world’s third biggest smartphone maker by shipments.

Huawei was scheduled to announce that it had struck a deal with AT&T at the Las Vegas trade show on Tuesday.

Both AT&T and Huawei declined to comment.

In what is likely to be a face saving measure, Huawei said, it will announce new products for the U.S. market on Tuesday, without giving any further details.

Although the Chinese company’s phones are available in the U.S. they have never been carried by a major carrier.