Separately, he said President Donald Trump had given his department 150 days to establish a process to screen US companies' purchases of equipment from Huawei, and other equipment providers with which officials have concerns.
The administration could continue granting approvals to US suppliers to do business with Huawei, using that as leverage to encourage the company - and the Chinese government - to acquiesce to USA interests. Thus, it is U.S. companies are prohibited from using equipment of companies, one of which is a risk to national security could arise.
The UK's Financial Times newspaper now claims to have seen a HiSilicon internal memo - written in response to the latest United States moves - in which company boss He Tingbo hints cryptically at efforts to bolster in-house tech. "China will take necessary measures to safeguard Chinese business' legitimate rights and interests", he said.
In what some have compared to the Cold War arms race, the United States is anxious that 5G dominance would give any global competitor such as China an advantage Washington is not ready to accept. The executive order comes in the midst of rising tensions between the two superpowers, which are both now engaged in an active trade war.
Some observers say the actions of the Trump administration will likely worsen the already tense situation. Google doesn't collect a fee for Android, but an exports ban might prevent Huawei from licensing Android. He served as assistant secretary of commerce for export administration during the presidency of Barack Obama.
The e-mail said that Huawei's inclusion in the so-called "physical list" is the latest step by the USA government to suppress the company because of political purposes. American business partners of Huawei could be taking a serious economic damage.
The U.S. Commerce Department said on Wednesday it was adding Huawei Technologies Co and 70 affiliates to its so-called "Entity List" in a move that bans the Chinese company from acquiring components and technology from U.S. firms without prior U.S. government approval.
On enquired whether China would now target USA firms in retaliation, Lu said, "as for the foreign firms, so long their operations are lawful, they should not be concerned in worldwide trade, the basis is mutual respect and mutual benefit". The move follows Canada's decision to detain a senior executive of Huawei on charges of illegal transactions. "While the intent is to punish Huawei, ultimately, USA companies are also being penalised", he said, adding that the likelihood that the Commerce Department will grant licences to allow sales is negligible.
It's no secret that the USA government isn't fond of Huawei, now the second largest smartphone maker on the planet.
Washington has so far failed to produce any hard evidence to suggest that Huawei is a national security risk, although Chinese law demands that any Middle Kingdom firm co-operate with the authorities if required.
US President called it a national emergency and order to ban some tech products from nations. It has been used mainly to seize the money of drug dealers, terrorists or collapsed corrupt governments.
Huawei is one of the largest suppliers of telecom equipment in the world. As a result, sale or transfer of American technology to a company or person on the Entity List requires a license issued by the BIS, and a license may be denied if the sale or transfer would harm United States national security or foreign policy interests.
For the past 10 years, American officials have warned that using Huawei technology is a national security risk.
Highlighting the risk to American companies, investors punished several Huawei suppliers Thursday by selling off shares.
"Huawei will seek remedies immediately and find a resolution to this matter", the company said in a statement.
After days of speculation, Trump signed an executive order which, although does not name Huawei, effectively prevents the company from selling its products in the United States, and even buying components from the US.
Rubio said the administration deserved enormous credit for its efforts to comprehensively tackle the threat that Huawei and other foreign state-directed telecommunications companies pose through their efforts to undermine and endanger critical U.S. systems and infrastructure.
"The tariff hike by the United States will only bring greater difficulties to the consultations", Gao said.
The US and China are locked in a trade battle that has seen mounting tariffs, sparking fears the conflict will damage the global economy.
5G's importance to emerging industries and its reliance on a complex mixture of software and hardware have countries like the US anxious that adversaries could easily hack the networks to access user data and divert communication traffic to their own servers. With Taiwan's robust capabilities in the telecom industry and computer component manufacturing, the country should capitalize on the disrupted global supply chain in the wake of the Trump administration's Huawei ban.
But British ministers have discussed allowing Huawei a restricted role in building parts of its 5G network.
Reuters reports on its own that a former British spymaster also confirms Trump's assessment of Huawei.