The US is ramping up a conflict with China, putting their economies and their diplomatic relationship at risk.
It has moved to restrict Huawei’s ability to trade with US firms, shortly after reigniting the trade war with tariff hikes.
The latest blows to the Chinese telecoms giant mark a grave escalation in the US-China power struggle.
As the trade war broadens into a “technology cold war”, the prospect of a deal looks increasingly distant.
“The US action against Huawei is a watershed moment and a very significant escalation of tensions,” says Michael Hirson, Asia director at the Eurasia Group.
“A trade deal is not doomed but looks very unlikely, especially in the near term.”
The crackdown on Huawei has become a central part of relations between Washington and Beijing, which has primarily played out as a trade war over the past year.