US President Donald Trump has declared a national emergency to protect US computer networks from "foreign adversaries".
He signed an executive order which effectively bars US companies from using foreign telecoms believed to pose national security risks.
BBC reports the order does not name any company, but is believed to target Huawei.
The Chinese tech giant said restricting its business in the US would only hurt American consumers and companies.
Several countries, led by the US, have raised concerns in recent months that Huawei products could be used by China for surveillance