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Huawei Technologies Co. and China's top chipmaker have developed an advanced 7-nanometer processor to power its newest smartphone, indicating that Beijing is making early gains in a countrywide attempt to avoid US efforts to stop its technological advances.

Huawei, a leading supplier of telecom gear, smartphones, and other advanced equipment, was often the target of Washington sanctions over alleged cybersecurity concerns over the past few years. 

Former US President Donald Trump effectively barred American companies from doing business with Huawei. Current US President, Joe Biden, imposed further sanctions, including the ban on sales of new Huawei equipment in the United States. 

Days ago, US Commerce Secretary Gina Raimondo revealed the US would maintain its tough position on denying China cutting-edge microchips, claiming that technology advancements might be exploited to bolster the Asian nation's military capability.

The new chip was created in China by Semiconductor Manufacturing International Corp., according to a teardown of the handset that TechInsights conducted for Bloomberg News.

According to the firm, it is evidence that China is breaking down the walls of US sanctions by building a "domestic chip ecosystem."

The chip also raises questions about how efficient the US sanctions are. 

Read more: US escalates tech war on China, more restrictions could be on the way

TechInsights Vice Chair Dan Hutcheson called the innovation an "important statement for China," adding that “SMIC’s technology advances are on an accelerated trajectory, and appear to have addressed yield-impacting issues in their 7nm technology.”

Last week, Huawei stealthily posted the phone online without disclosing important specs, such as the CPU design or wireless connection rates.

The Mate 60 advancement might re-set the battle for technological dominance, indicating that Huawei is capable of matching, if not exceeding, the fastest mobile devices utilizing a processor designed and manufactured in China. According to Bloomberg, the Mate 60 Pro can achieve cellular speeds comparable to Apple's newest iPhones.

The phone appeared to be limited in quantities and sold out quickly. It was met with a patriotic outpouring on Chinese social media, and major publications such as CCTV and the Global Times commended it as a sign of China's indomitable spirit.