China’s Ministry of Commerce says it will take “all necessary measures” in response to Chinese tech giant Huawei’s new restrictions on using American technology, calling the measures an abuse of state power and a violation of market principles. In an statement on the ministry’s website on Sunday, an unnamed spokesperson said the rules also threatened the security of “global industrial and supply chains”.

“The US exercises state power under the so-called pretext of national security, and abuses export control measures and involves specific enterprises from other countries,” the statement said.

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

Under the new rules, foreigners Semiconductor Manufacturers using American technology must obtain an American license to operate the ship HuaweiStreamlined semiconductor for Chinese company

The chip design and manufacturing equipment used in the world’s semiconductor plants are mostly US-made, so the new rule affects foreign producers who sell to Huawei and affiliates HiSilicon, Which designs chipsets primarily used in smartphones and wireless base stations. The US Department of Commerce said foreign foundries would be given a 120-day grace period for chips already in production.

US Commerce Secretary Wilbur Ross said on Friday that Washington wants Huawei to avoid previously imposed restrictions on the use of American technology to design and produce semiconductors abroad.

Huawei Technologies, China’s first global tech brand and manufacturer of network equipment and Smartphones, Is at the center of an American-Chinese conflict over Beijing’s technology ambitions.

US officials say Huawei is a security risk the company denies.

It was unclear what form China’s response would take, but the sides are already deep in opposition to allegations of copyright piracy on the US and unfair trade by firms in China’s heavily-controlled economy.

Canada Arrested Huawei’s chief financial officer, Meng Wenzhou, daughter of Huawei’s founder, in December 2018 in a case that created a diplomatic ruckus between the three countries and complicated US-China trade negotiations. China detained two Canadians in retaliation for Meng’s arrest.