Lord Browne is stepping down as UK chairman of Huawei ahead of a government ban on the company's kit in 5G networks.
The former BP chairman handed in his resignation this week, according to Sky News. He will leave in September, six months before his term had been due to end.
The emergence of Lord Browne's resignation came just hours before the government ordered telecoms businesses to remove all Huawei equipment from the UK's 5G networks by 2027, triggering a renewed clash with Beijing.
UK's mobile providers will also be banned from buying new Huawei 5G equipment after the end of this year - a move that is expected to delay the rollout of 5G by a year.
The decision - following intense pressure from both the US administration of Donald Trump and backbench Tory MPs - marks a major U-turn by the Government.
In January, ministers announced Huawei could play a limited role in the 5G network, despite warnings that its equipment could be used by China for espionage or to disrupt the UK's critical national infrastructure.
Lord Browne, who joined Huawei in 2015, warned last week that a Government decision to ban Huawei kit could seriously harm the UK's relationship with China.
“The UK has had a very long relationship with China and I hope it’s not one that they simply throw away," he said in an interview with Reuters.
Lord Browne, in his final term as chairman of Huawei UK, said when he joined no one could pronounce the company's name or knew what it did.
"It's become very, very visible indeed, and it has become a football between the United States and China," he said.
He compared the competition between China and the US in technologies such as 5G and AI to the space race in the 1950s when Russia was first to launch a satellite.
"A very similar reaction is occurring now, because it's always been in the interests of the US to be ascendant in this area, it's been good for the world as well," he said.
A Huawei spokesman said: "When Lord Browne became Chairman of Huawei UK's board of directors in 2015, he brought with him a wealth of experience which has proved vital in ensuring Huawei’s commitment to corporate governance in the UK. He has been central to our commitment here dating back 20 years and we thank him for his valuable contribution."
Lord Browne was previously chief executive of BP, joining the oil firm in 1966 and serving as chief executive between 1995 and 2007.
In 2015, he joined Huawei UK as its first independent chairman. His appointment was said by the company to be its “latest illustration of [our] commitment to openness and transparency”.