China would respond with countermeasures if the U.S. imposes any more sanctions on Huawei Technologies Co. Ltd., CNBC.com reported March 31, citing Huawei's rotating chairman, Eric Xu.
This follows earlier comments from sources cited by Reuters that suggested senior U.S. government officials had finalized a new set of restrictions requiring foreign companies using U.S. chipmaking equipment to have a U.S. license to supply particular chips to Huawei.
A source reportedly said the rules aim to limit Taiwan Semiconductor Manufacturing Co. Ltd.'s chip sales to Huawei.
Xu reportedly warned that China would take countermeasures if the U.S. implemented such measures, warning that it would adversely affect Huawei, U.S. companies and the global ecosystem.
Huawei's new flagship smartphone P40 was recently found to have U.S.-manufactured parts installed despite the company being on the entity list, according to a March 31 Financial Times (London) report.
The Chinese network equipment manufacturer got an extension earlier in March on a temporary license allowing it to do business with American suppliers.