Huawei Technologies has pledged not to pursue new business in Iran as the world’s second-largest telecom infrastructure vendor seeks to contain damage to its reputation in Western markets.

The rare move follows criticism especially in the US – a market in which the Chinese telecom equipment maker is struggling – that equipment Huawei sold to Iran’s state-controlled mobile operators allegedly helped the Iranian authorities locate and arrest dissidents and censor the news.

Huawei’s multinational competitors such as Ericsson and Nokia Siemens Networks have also been active in the Iranian market, but the Chinese company has been expanding there more rapidly over the past two years following political unrest. The company has close to 1,000 staff in the country.