China warns US of ‘all necessary measures’ over Huawei rules

China’s commerce ministry says it will take “all necessary measures” in response to new U.S. restrictions on Chinese tech giant Huawei’s ability to use American technology, calling the measures an abuse of state power and a violation of market principles.   

“The U.S. uses state power, under the so-called excuse of national security, and abuses export control measures to continuously oppress and contain specific enterprises of other countries,” the statement read.   

China will “take all necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises,” it said.   

Under the new rules, foreign semiconductor makers who use American technology must obtain a U.S. license to ship Huawei-designed semiconductors to the Chinese company.   

Chip design and manufacturing equipment used in the world’s semiconductor plants are mostly U.S.-made, so the new rule affects foreign producers that sell to Huawei and affiliates including HiSilicon, which makes chips for supercomputers with scientific and military uses.