US government says it will ban American firms from selling electronics parts without its approval to China-based telecom equipment maker Huawei Technologies.
In a statement, the US Commerce Department says it took the measure after concluding that Huawei is engaged in activities that are deemed contrary to US national security.
Reuters reports that the move will make it difficult for Huawei to make some products because of its reliance on US suppliers.
The US took similar steps against another Chinese telecoms equipment maker ZTE in April last year.
Earlier on Wednesday, US President Donald Trump signed an executive order declaring a national emergency over threats to American technology.
No specific companies are named but the order is apparently aimed at firms like Huawei.
In a statement, Huawei Technologies said the move will hurt the profits of businesses and customers in the United States and will delay the development of America’s 5G networks.
The Trump administration is apparently increasing its pressure on China, as part of moves to reach an agreement in their trade negotiations.