"The United States needs to strangle Huawei", Sasse, R-Neb., said in a statement. The move has largely frozen Huawei out of getting some of the computer chips it needs to make equipment integral to new high-speed wireless networks.
This week, he moved to restrict U.S. government pension funds from investing in Chinese companies. "This rule is long overdue".
It now requires US companies to obtain licenses to sell certain items-including semiconductor production equipment and sensors-to companies in China that support the Chinese military, even if the items are for civilian use.
While some of the complex tools required to make chips come from companies outside the United States, such as Japan's Tokyo Electron and Hitachi and the Netherlands' ASML, analysts say it would be hard to put together an entire toolchain for making advanced semiconductors without at least some American equipment.
In response to the announcement, Chinese state-run media Global Times wrote on Friday that Beijing was ready to place USA companies on an "unreliable entity list", as part of countermeasures in response to the new limits on Huawei.
The Commerce Department said it was broadening its sanctions enforcement to include semiconductor designs that are developed using USA software and technology.
A senior administration official told Fox Business that the administration looked at the economic impact, including the number of companies and products affected, before making a change to the rules.
Director-general for the telecom association Information Consumption Alliance, Xiang Ligang, confirmed as quoted by China Daily that Chinese mainland firms had conducted all design, manufacturing, testing and packaging.
Huawei is at the center of a broad struggle for technological dominance between the USA and China.
The order means that within 120 days, companies that manufacture or design chips that end up in Huawei equipment will need a licence to use U.S. equipment.
The new restrictions are separate from the Trump administration's ongoing push to cancel USA technology sales to Huawei.
Huawei responded saying it is "ready and willing" to engage with the USA government and come up with effective measures to ensure product security.
The Commerce Department said this week that reprieve is being extended for another 90 days.