The U.S. administration is considering limits to Chinese video surveillance firm Hikvision's ability to buy U.S. technology, the New York Times reported on Tuesday, deepening worries about trade frictions between the world's two top economies.
The move would effectively place Hikvision on a U.S. blacklist and U.S. companies may have to obtain government approval to supply components to Hikvision, the paper said.
The U.S. Commerce Department blocked Huawei Technologies from buying U.S. goods last week, effectively banning U.S. companies from doing business with the Chinese firm, a major escalation in the trade war, saying Huawei was involved in activities contrary to national security.
Hikvision and Dahua Technology which produce audio-visual equipment that can be used for surveillance were specifically cited in a letter to Trump's top advisers last month, signed by more than 40 lawmakers.
The lawmakers said China's actions in its western region of Xinjiang "may constitute crimes against humanity" and urged tighter U.S. export controls to ensure that U.S. companies are not assisting the Chinese government's crackdown there.
The group of signatories were led by U.S. Senator Marco Rubio and U.S. Representative Chris Smith on the Republican side and Senator Bob Menendez and Representative James McGovern on the Democratic side.
China has faced growing condemnation from Western capitals and rights groups for setting up facilities that U.N. experts describe as mass detention centers holding more than 1 million ethnic Uighurs and other Muslims.
Hikvision shares opened 10% lower.
The White House did not immediately respond to a request for comment on the report. Hikvision could not be immediately reached for comment.