Huawei is secretly building a network of microchip factories that could allow it to bypass US sanctions, a trade body has claimed.

The Chinese technology giant has reportedly received as much as $30bn (£23.7bn) from the Beijing government to build local plants, which comes amid a deepening trade war with US President Joe Biden.

Huawei, which is one of China’s leading tech companies, has been under US sanctions since 2019 after White House officials deemed its equipment a spying risk.

The company has since shifted into chip production and will be boosted by the estimated $30bn investment from the state.

China has reportedly backed Huawei’s high-tech capabilities despite sanctions as the country looks to become self-sufficient in semiconductors.

The Semiconductor Industry Association, which is based in Washington DC, said in a recent presentation seen by Bloomberg that Huawei has acquired two chipmaking plants and is building three others.

The plants are allegedly being operated by businesses without Huawei’s name or branding, creating an opaque supply chain that could hinder US attempts to block exports of chipmaking equipment to sanctioned companies.