This comes not long after Britain's National Security Council, a secretive body made up of senior civil servants and cabinet ministers, voted to keep the status quo on Huawei and use its equipment in non-core settings within 5G.
A member of Huawei's reception staff walks in the foyer of a building at the company's Bantian campus in April in Shenzhen, China.
Global technology companies are anxious about the effects of these moves on the technology industry. "China will take further necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises".
"We urge the United States to stop the wrong approach", said foreign ministry spokesman, Lu Kang.
The pain for Huawei's supply chain would be redoubled if the trade war were to send shock waves through the larger Chinese technology industry.
Some observers say the actions of the Trump administration will likely worsen the already tense situation.
The export restriction is "a grave escalation with China that at minimum plunges the prospect of continued trade negotiations into doubt", Eurasia Group analysts said in a report. According to a report released by Gartner earlier this year, Huawei "s semiconductor procurement expenditure reached $ 21.131 billion in 2018, a 45% year-on-year increase". He served as assistant secretary of commerce for export administration during the presidency of Barack Obama.
The Chinese telecom titan has been repeatedly accused by the USA and its allies of stealing commercial data, as well as cooperating with the Chinese government in regards to allegedly handing over personal data - something that Huawei stated is wrong and has never been requested of them. He added that if Huawei and its business partners cannot get the computer software or equipment they need, their operations could collapse.
President Trump first took action by signing an executive order declaring a national emergency and banning USA companies from using telecommunications equipment made by firms deemed to pose a national security risk.
The president's executive order does not identify a country or company by name.
Segal said that with US-China trade talks at a standstill, the White House "felt the time had finally come to pull the trigger". But they have not shown any evidence that any Huawei equipment in the USA or elsewhere has been compromised.
Remembering Grumpy Cat's prolific advertising career-from Friskies to Grumppuccino
It allowed her to quit her job as a waitress at Red Lobster within days of her cat's internet debut, USA media reported. According to his owners, the cat from Arizona, whose real name was Tardar Sauce , "helped millions of people smile".
Huawei says company shares are owned by employees and Mr Ren insists it enjoys no favour from Beijing, but analysts dispute that.
The President's executive order gives the federal government the power to bar American companies from doing business with foreign suppliers that could pose a threat to national security such as the Chinese firm Huawei.
Restrictions on sales "would be bad for any Huawei supplier, and for the semiconductor industry at large", Chris Caso, a semiconductor analyst at Raymond James, wrote in a research note.
It has routinely been used to freeze the assets of designated terrorists and drug traffickers, and impose embargoes on hostile former governments.
Huawei is the world's largest manufacturer of telecommunications equipment. The commerce department added Huawei and 70 companies to this banned list, meaning they must now seek government approval to use components and technology from U.S. companies.
The Trump administration has pushed allies around the world not to adopt Huawei's 5G technology, which American officials have warned could be used for spying by the Chinese. Chairman of Huawei's Board of Directors Liang Hua also stated that the company intends to sign so-called "no-spy" agreements with other governments, including that of the UK.
Huawei added that it will immediately seek remedies against the decision and "find a resolution".
The fears about Huawei are centered on one point only: It is based in China and there is a belief-which both Huawei and China have denied, repeatedly-that it is required to work hand-in-hand with Chinese security services.
Trump, who has embraced protectionism as part of an "America First" agenda, has railed against what many USA and European officials and companies describe as China's unfair trade practices, including forced technology transfers and intellectual property theft.
"The tariff hike by the United States will only bring greater difficulties to the consultations", Gao said.
Huawei has been a flashpoint in US-China relations.
The U.S. crackdown, announced on Wednesday, was the latest shot fired in a U.S. Among Huawei's chip suppliers, United States companies are undoubtedly the most, Intel, Qualcomm, Marvell, TI, Nisshin, Skyworks, etc.
Its equipment is the backbone for telecom networks that carry much of the planet's data and communications traffic. Susan Shand adapted it for VOA Learning English.