A Swedish court of appeal gave the green light to a 5G spectrum auction by local telecoms regulators that explicitly prohibits bidders from using equipment from Chinese telecom gear giant Huawei Technologies Co. Ltd.

The decision, which revokes a previous injunction stopping the ban from taking effect, deals another blow to the Chinese company in its struggle to get foreign networks to use its equipment in the face of a U.S.-led campaign against the company and its alleged ties to the Chinese government.

It is unclear if Huawei will be able to overturn the appeal court ruling, and if it does, what chance it has to do so before bidding takes place in the Swedish telecom equipment auction.

The Swedish regulator now says it needs time to reach out to bidding parties before settling on a date for the auction.

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Contact editor Marcus Ryder (marcusryder@caixin.com)