The move by the US will stop Huawei from purchasing parts and components from USA companies without securing approval from Washington first.
Ltd. has been developing its own chips for years in anticipation of an "extreme scenario" in which the US government cuts off access to American technology, an executive at the Chinese telecom company's chip-making arm said Friday.
HiSilicon, which mainly designs chips for Huawei equipment, made the comments in a letter to staff attributed to President He Tingbo dated "the small hours of May 17", shortly after the United States officially banned Huawei from buying USA technology without special approval from the federal government. "Huawei will seek remedies immediately and find a resolution to this matter".
The U.S. crackdown, announced on Wednesday, was the latest shot fired in a U.S.
Trade talks had looked close to collapsing in the past week after a dispute over Chinese changes to a draft text prompted the United States to hike tariffs on Chinese goods and Beijing to retaliate with higher duties on US products. "For the trade war initiated by the United States, China has long indicated its attitude: It is unwilling to fight, but it is not afraid to fight", part of one thread read.
"China will take all the necessary measures to resolutely safeguard the legitimate rights of Chinese firms".
Huawei's chief financial officer Meng Wanzhou, the daughter of its founder, was detained in Canada in December at the request of the US, which seeks her extradition over allegations of violating Iran sanctions.
She and the company deny the charges.
Both history and reality have demonstrated that as two major nations, China and the US would only thrive through cooperation, Wang noted, adding that the two sides should keep differences in check and expand cooperation on a mutually beneficial basis.
Last week, the USA added Huawei to the Commerce Department's Bureau of Industry and Security (BIS) Entity List. It later revised the number of affiliates down to 68.
This week's escalation of the USA campaign against Huawei has rattled investors.
The U.S. government, under a "policy of presumption of denial" will review license applications.
The company beat Apple to become the world's second largest smartphone maker after South Korea's Samsung last August. Ltd. and Apple Inc., according to Gartner, a research firm.
Huawei also depends heavily on US suppliers.
"We have not done anything which violates the law", Ren said, adding the USA measures would have a limited impact.
Shares of Xilinx closed down 7.3 percent while those of rival chipmaker Qualcomm Inc fell 4 percent. However, with the world's two largest economies tied up in an escalating trade war, the launch hangs in the balance.
Such moves, as well as the increase of tariffs on $200 billion worth of Chinese goods earlier this month, complicated the prospect of continuing the bilateral trade talks that have been ongoing for more than a year.
The second issue centers on the additional volume of USA goods that China will agree to buy, Vice Premier Liu He, China's lead trade negotiator, said last week without giving details.
"Even if the USA asks us to manufacture over there, we will not go", he said.
He said Huawei would not be taking instructions from Washington.