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Huawei & Cisco MPLS VPLS VC up but no end to end connectivity

I have ASR1001 with Cisco IOS XE Software, Version 16.06.04
Cisco IOS Software [Everest], ASR1000 Software (X86_64_LINUX_IOSD-UNIVERSALK9-M) and Huawei Quidway NE 20 MPLS network setup as below topology.
My goal is to have both point to point and point to multi point setup working between Huawei and Cisco MPLS routers.
Point to point is working perfect between Huawei and Cisco with no problems with xconnect.

However when i try point to multipoint end to end connectivity is not there but the VC is up and i can see remote ldp
lebels on both routers but hosts can not ping each other between site 2 to site1 and 3.huawei and cisco mpls.PNG Below are further details.

PE_2_CISCO_ASR1001_CONFIG
l2 vfi TEST manual
vpn id 222
bridge-domain 40
neighbor 10.10.10.11 encapsulation mpls
neighbor 10.10.10.10 encapsulation mpls
!
interface GigabitEthernet0/0/4
description L2_P2MP
no ip address
negotiation auto
service instance 20 ethernet
encapsulation dot1q 905
bridge-domain 40
!
address-family l2vpn vpls
neighbor 10.10.10.11 activate
neighbor 10.10.10.10 activate

 

PE_1_HUAWEI_CONFIG
vsi TEST static
pwsignal ldp
vsi-id 222
peer 10.10.10.11
peer 10.10.10.1
!
interface Ethernet4/0/7.99
vlan-type dot1q 905
description vpls_test_with_cisco
l2 binding vsi TEST
!
l2vpn-family
policy vpn-target
peer 10.10.10.11 enable
peer 10.10.10.1 enable
!
vpls-family
policy vpn-target
peer 10.10.10.11 enable
peer 10.10.10.1 enable
!

PE_3_HUAWEI_CONFIG
vsi TEST static
pwsignal ldp
vsi-id 222
peer 10.10.10.10
peer 10.10.10.1
!
interface Ethernet4/0/7.99
vlan-type dot1q 205
description vpls_test_with_cisco
l2 binding vsi TEST
!
l2vpn-family
policy vpn-target
peer 10.10.10.10 enable
peer 10.10.10.1 enable
!
vpls-family
policy vpn-target
peer 10.10.10.10 enable
peer 10.10.10.1 enable
!

PE_2_CISCO_ASR1001_CONFIG

Local interface: VFI TEST vfi up
Interworking type is Ethernet
Destination address: 10.10.10.10, VC ID: 222, VC status: up
Output interface: Gi0/0/3, imposed label stack {1566 150568}
Preferred path: not configured
Default path: active
Next hop: 10.10.10.23
Create time: 00:11:28, last status change time: 00:11:28
Last label FSM state change time: 00:11:28
Signaling protocol: LDP, peer 10.10.10.10:0 up
Targeted Hello: 10.10.10.1(LDP Id) -> 10.10.10.10, LDP is UP
Graceful restart: not configured and not enabled
Non stop routing: not configured and not enabled
Status TLV support (local/remote) : enabled/not supported
LDP route watch : enabled
Label/status state machine : established, LruRru
Last local dataplane status rcvd: No fault
Last BFD dataplane status rcvd: Not sent
Last BFD peer monitor status rcvd: No fault
Last local AC circuit status rcvd: No fault
Last local AC circuit status sent: No fault
Last local PW i/f circ status rcvd: No fault
Last local LDP TLV status sent: No fault
Last remote LDP TLV status rcvd: Not sent
Last remote LDP ADJ status rcvd: No fault
MPLS VC labels: local 338, remote 150568
Group ID: local n/a, remote 0
MTU: local 1500, remote 1500
Remote interface description:
Sequencing: receive disabled, send disabled
Control Word: Off (configured: autosense)
SSO Descriptor: 10.10.10.10/222, local label: 338
Dataplane:
SSM segment/switch IDs: 41067/16489 (used), PWID: 24
VC statistics:
transit packet totals: receive 0, send 0
transit byte totals: receive 0, send 0
transit packet drops: receive 0, seq error 0, send 0

 

[HQNE20E]display vsi name TEST verbose

***VSI Name : TEST
VSI Index : 21
PW Signaling : ldp
Member Discovery Style : static
PW MAC Learn Style : unqualify
Encapsulation Type : vlan
MTU : 1500
VSI State : up

VSI ID : 222
*Peer Router ID : 10.10.10.1
VC Label : 150568
Peer Type : dynamic
Session : up
Tunnel ID : 0x11e8,
*Peer Router ID : 10.10.10.11
VC Label : 150570
Peer Type : dynamic
Session : up
Tunnel ID : 0x12ed,

Interface Name : Ethernet4/0/7.99
State : up

**PW Information:

*Peer Ip Address : 10.10.10.11
PW State : up
Local VC Label : 150570
Remote VC Label : 150741
PW Type : label
Tunnel ID : 0x12ed,
*Peer Ip Address : 10.10.10.1
PW State : up
Local VC Label : 150568
Remote VC Label : 338
PW Type : label
Tunnel ID : 0x11e8,

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