Beijing has urged the United States to stop the "unreasonable suppression of Huawei and Chinese enterprises" after Washington announced new export controls to restrict the tech giant's access to semiconductor technology.

The latest restrictions on the world's second-largest smartphone manufacturer, which is at the centre of US spying allegations, are a new escalation in the US-China battle for global technological dominance.

"The Chinese government will firmly uphold Chinese firms' legitimate and legal rights and interests," the Ministry of Foreign Affairs said in a statement Saturday.

"We urge the US side to immediately stop its unreasonable suppression of Huawei and Chinese enterprises."

The ministry said the Trump administration's actions "destroy global manufacturing, supply and value chains".

The US Commerce Department said Friday the controls would "narrowly and strategically target Huawei's acquisition of semiconductors that are the direct product of certain US software and technology."

US officials have repeatedly accused the Chinese technology giant of stealing American trade secrets and aiding China's espionage efforts, ramping up tensions with the rival superpower while both sides were involved in a long-simmering trade war.

As a result, Huawei has increasingly relied on domestically manufactured technology, but the latest rules will also ban foreign firms that use US technology from shipping semiconductors to Huawei without US permission.

The new restrictions will cut off Huawei's access to one of its major suppliers, the Taiwanese chipmaker TSMC, which also manufactures chips for Apple and other tech firms.

The US last year banned Huawei from using US-manufactured semiconductors in their products.

China has threatened retaliation against the US for the move, including imposing restrictions on major US firms and putting them on an "unreliable entity list", according to an anonymous government source quoted in the Communist Party tabloid Global Times on Friday.

US tech giants Apple, Cisco, Qualcomm and planemaker Boeing are among the firms that may be targeted, the report said.

US-China relations are again on the rocks with Washington and Beijing trading barbs over the origins of the coronavirus pandemic.

Over the past week, China has also threatened retaliatory measures against the US for restricting the visa stay limits of Chinese journalists, and for several lawsuits filed by US lawmakers against China for the coronavirus pandemic.

Huawei has not yet responded to requests for comment.

US seek to cut off China's Huawei from global chip suppliers
Washington (AFP) May 15, 2020 – US officials moved Friday to cut off Chinese tech giant Huawei from global chipmakers, ramping up sanctions on the company seen by Washington as a national security risk.

The Commerce Department said it was broadening its sanctions enforcement to include semiconductor designs that are developed using US software and technology.

Officials said Huawei had been circumventing sanctions by obtaining chips and components that are produced around the world based on US technology.

"This announcement cuts off Huawei's efforts to undermine US export controls," the Commerce Department said in a statement.

The department said it would "narrowly and strategically target Huawei's acquisition of semiconductors that are the direct product of certain US software and technology."

Commerce Secretary Wilbur Ross said in a statement that even as Huawei seeks to develop its own components in response to US sanctions, "that effort is still dependent on US technologies."

The move is the latest aimed at Huawei, one of the world's biggest tech and smartphone firms, which US officials say has been stealing American trade secrets and aiding Beijing's espionage efforts.

Huawei has denied links to the Chinese government, and the sanctions have heightened US-China trade tensions.

The latest action "puts America first, American companies first and American national security first," a senior Commerce Department official said in a statement.

US officials said the new rules would have a 120-day grace period. After that, any chips destined for Huawei or its affiliates would be required to have a license.

A senior State Department official, who joined a call with journalists on the new actions, said the move would not necessarily deny Huawei access to these products but require a license allowing Washington to keep track of the technology.

"One shouldn't jump to conclusions on what the impact will be," the official said.

– Taiwan chipmaker in US –

In a separate announcement, US officials announced the Taiwan Semiconductor Manufacturing Corporation intends to invest $12 billion in a US-based nanometer semiconductor foundry.

The deal "is a game changer for the US semiconductor industry that will bolster American national security and our economic prosperity," Secretary of State Mike Pompeo said in a statement.

Officials said the two announcements were unrelated. But analyst Patrick Moorhead of Moor Insights & Strategy said both were related to efforts to cut off China and Huawei from key US technologies.

"The US is concerned with 'feeding' Huawei, who they consider a threat with US technologies that could turn around and spy on them or their allies," Moorhead said.

"With TSMC, the fear was that China could physically or electronically intrude on Taiwan based TSMC."

Washington last year said it would blacklist Huawei from the US market and from buying crucial American components, though it has extended a series of reprieves to allow US businesses that work with Huawei time to adjust.

On Friday it extended this reprieve by another 90 days but said these exceptions are not likely to be extended further.

The Commerce Department senior official said the grace period was aimed at easing the transition for those using Huawei equipment but warned that "entities who rely on that equipment are urged to make preparations" to transition away from that by August.

Washington has been especially active in aiming to keep Huawei from developing 5G or fifth generation wireless networks in the US and allied countries, claiming these systems would be a security risk.