BEIJING • China yesterday hit out at new US sanctions against telecom giant Huawei, accusing Washington of an "abuse of national power" to block the rise of Chinese companies.

A United States Commerce Department statement on Monday barred an additional 38 Huawei affiliates from buying American computer chips and other technology.

Commerce Secretary Wilbur Ross said the action was aimed at closing loopholes the company explored after previous US actions, while Secretary of State Mike Pompeo called it a "direct blow" against the Chinese Communist Party.

Tensions were already high between the two powers, and Washington has claimed that Chinese firms are used to spy for Beijing - an accusation the Chinese government and the companies deny.

Chinese Foreign Ministry spokesman Zhao Lijian yesterday said there was no evidence Huawei products contained security loopholes or back doors, adding that the sanctions have "completely punctured the last pretence of market principles and fair competition that the US has always touted".

Washington has engaged in "abuse of national power to apply all sorts of restrictions on Huawei and other Chinese enterprises", he said at a regular press briefing.

Despite the US decision, Mr Ross said on Fox Business that talks with China continue on various levels. On Monday night in Beijing, Foreign Minister Wang Yi also struck an optimistic note as he welcomed back staff from the closed Chinese consulate in Houston, saying in Beijing that he believed relations with the US will be "reborn from the ashes".

AGENCE FRANCE-PRESSE, BLOOMBERG