In the worst case scenario, this week's actions would hurt Huawei tremendously in the short term and all-but-guarantee it and other major Chinese firms voluntarily decouple themselves away from reliance of US -sourced components to reduce vulnerability.
"Huawei will seek remedies immediately and find a resolution to this matter", the company said in a statement. That is the context we have these US-China trade negotiations, that very much stalled on the front of technology transfer, intellectual property.
"We urge the United States to stop the wrong approach", said a foreign ministry spokesman, Lu Kang. Also, the Chinese government may choose to take measures against USA companies in China, with Apple being a prominent target. Meng was wanted in connection to Huawei's alleged violations of sanctions on Iran and has been kept in Canada since December while she fights extradition to the US. But how do you take it that the controversy surrounding Huawei is being discussed in national security terms and not in terms of competition among the company and its competitors?
China threatened to retaliate, accusing Mr Trump of engaging in industrial sabotage by using state security "as a pretext for suppressing foreign business".
The U.S. Commerce Department said on Wednesday it was adding Huawei and 70 affiliates to its "Entity List", which bars them from buying components and technology from U.S. firms without government approval.
As an example, the order cites a criminal case pending against the company in federal court in Brooklyn, New York, over allegations Huawei violated USA sanctions against Iran. Requests for approvals for transactions will be reviewed under a "policy of presumption of denial", which suggests obtaining permission will be very hard.
Huawei was the world's third-largest purchaser of semiconductors a year ago, accounting for 4.4 per cent of global market share, behind Samsung Electronics and Apple, according to research firm Gartner.
CNBC's Joe Kernen reported on two emails he received from a "well-known CEO" and a "really smart telecom investment banker", as the discussion on "Squawk Box" turned to the president's latest salvo in the U.S.
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The US government just delivered its biggest blow yet to Huawei
The Department of Commerce found that steel and aluminum imports are a threat to USA national security and recommended tariffs. If Huawei has to do business with other suppliers, Purdy warns that USA workers may be hurt along the way.
With all the news-related activity around Huawei, some of which is even actual news, we've chose to stop chronicling each minute twist and turn around the Chinese telco kitmaker and its security woes as they happen, and instead slice and dice them for your delight and delectation.
Analysts say that the USA sanctions on Huawei are not limited to US companies. Qualcomm fell 4 percent. China called the move "bullying and extreme pressure" which "violates multilateral trade rules".
The controversial decision comes just days after Trump imposed new tariffs on Chinese goods amid what some are calling an escalating trade war.
The company became the world's third-largest buyer of semiconductors a year ago.
By Wednesday, the United States and China had already announced staggering new tariffs on a combined $260 billion worth of trade-a figure reflective of a pretty bad week for bilateral relations.
"There's other things they can do, and M&A would certainly be one thing", said Stacy Rasgon, an analyst with Bernstein.
Wang Peng, deputy head of the China Center for Information Industry Development, said the new U.S. moves will disrupt the whole global electronics industry and hurt a string of United States companies that supply chips and other components to Huawei.
These restrictions are expected to affect USA subsidiaries of foreign companies, which are "U.S. persons" subject to the new regime, as well as US companies' business with any foreign companies that have contracts with entities like Huawei that involve information or communications technology or services.