The announcement follows a warning from  US senators and spy chiefs that China is trying to gain access to sensitive technologies and intellectual properties through telecommunications companies, academia and joint business ventures.

Republican Senator Richard Burr, chairman of the Senate Intelligence Committee, said he was concerned about the ties to the Chinese government of Chinese telecoms companies like Huawei Technologies Co Ltd and ZTE.

However there seems to be rather little evidence of spying which has been made public, and while the US is also targeting Russian companies like Kaspersky on rather flimsy evidence, the warnings seems to be more of a trade war than anything else.

ZTE said it is proud of the innovation and security of its products in the US market. The company takes cyber security and privacy seriously, has always adhered to laws and remains a trusted partner of U.S. suppliers and customers, the company added.

“As a publicly traded company, we are committed to adhering to all applicable laws and regulations of the United States, work with carriers to pass strict testing protocols, and adhere to the highest business standards”, it said.

Last week, Republican Senator Tom Cotton and Republican Senator Marco Rubio introduced legislation that would block the US government from buying or leasing telecoms equipment from Huawei or ZTE, citing concern the companies would use their access to spy on U.S. officials.

In 2012, Huawei and ZTE were the subjects of an investigation into whether their equipment provided an opportunity for foreign espionage and threatened critical US infrastructure - something they have consistently denied.

Allegations of hacking and internet spying have long strained relations between China and the United States. In 2014 then FBI Director James Comey said Chinese hacking likely cost the economy billions of dollars every year.

China has vehemently denied all US accusations of hacking attacks.