The Shenzhen device maker captured 18.1 percent of the local phone market in the second quarter of this year, shipping 12.5 million units, an IDC report published on Tuesday showed.
Huawei's domestic rebound comes after the company has faced a smattering of US export controls, Western bans and a graft probe in Belgium.
China's overall smartphone market shrank after six quarters of growth, according to the IDC data, with shipments totalling 69 million units, down four percent on-year.
"Despite the recent US-China trade truce, the broader economic environment presents ongoing challenges, with consumer confidence remaining subdued," Arthur Guo, a senior research analyst at IDC, said in the report.
"This suggests that a significant uplift in smartphone demand is unlikely in the immediate term, and the market will navigate a more complex landscape in the second half of the year."
China's economy grew more than five percent in the second quarter, official figures showed, despite the tariff chaos unleashed by US President Donald Trump.
Huawei has been at the centre of an intense standoff between the world's top two economies after Washington warned the company's equipment could be used by Beijing for espionage, an allegation the company denies.
Sanctions since 2019 have curtailed the firm's access to US-made technologies, forcing it to develop its own components.
California-based Apple has been suffering a slump in iPhone sales in China, and last year ceded its status as the country's best-selling smartphone brand to two local rivals.
In the IDC report, Apple came in fifth on the list, retaining 13.9 percent of China's smartphone market and shipping 9.6 million units.
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