U.S. blacklists Chinese telecom company

China on Thursday said it will “resolutely safeguard” its companies after the United States labeled telecom giant Huawei a security risk and curbed U.S. technology sales to it. The Department of Commerce on Wednesday added Huawei and 70 of its affiliates to the Entity List, which bans the company from buying U.S. technology without official consent. The agency said it has “a reasonable basis to conclude that Huawei is engaged in activities that are contrary to U.S. national security or foreign policy interest.”

Chinese Foreign Ministry spokesman Lu Kang criticized the move as an “abuse of export control measures” and warned the United States to “stop the wrong approach.”

U.S. President Donald Trump on Wednesday signed an executive order barring U.S. companies from using telecom equipment from any manufacturer considered a national security risk. The order does not list any particular companies, but the United States has been pressuring China to stop unfair business practices.

Huawei denies allegations that it spies on China’s behalf. The telecom company released a statement warning that restricting its business operations in the United States will harm the interests of U.S. companies and consumers. “We are ready and willing to engage with the U.S. government and come up with effective measures to ensure product security,” it said.

Meng Wanzhou, the CFO of Huawei, is under house arrest in Vancouver for U.S.-based charges of violating sanctions against Iran. Her lawyers are attempting to fight her extradition from Canada to the United States.