In a major blow to Chinese technology giant Huawei, a Swedish court had uphold a ban on selling the firm's 5G network equipment in the country.

The court's decision has dashed the Chinese firm's hopes of making a comeback in Europe.

Swedish telecom regulator PTS had in October last year banned Huawei from supplying 5G equipment to Swedish mobile firms due to security concerns raised by Sweden's security service SAPO.

With the ban on Huawei telecom gear, Sweden became the second country in Europe following the UK - and the first in the European Union - to ban network operators from using the Chinese firm's equipment in their 5G products.

The Chinese company challenged the PTS decision in the court. However, the court ruled in the favour of the ban.

Huawei moved the Swedish Court of Appeals against the lower court's ruling but failed to get any relief.

In a statement, Huawei's Swedish unit said it was disappointed by the verdict from the Stockholm's Administrative Court of Appeal.

"We will analyse the ruling, and evaluate our next steps, including other legal remedies under Swedish law and EU law, in order to continue to safeguard our legitimate rights and interests," Huawei wrote, reports Economic Times.

It should be noted that many European governments have been tightening controls on Chinese companies building 5G networks following diplomatic pressure from United States, which alleges Huawei equipment could be used by Beijing for spying.