China on Thursday warned retaliation for US President Donald Trump's order that effectively barred Chinese telecom giant Huawei from the US market, saying Beijing will take necessary measures to safeguard rights and interest of its business firms. Escalating the bruising trade war with China, President Trump signed an executive order on Wednesday barring American companies from installing the foreign-made telecom equipment posing a national security threat, a move apparently aimed at banning Huawei from US networks.

Trump's decision risks escalating tensions with China as the world's two largest economies clash over whether Huawei - the world's largest provider of telecommunications equipment - poses a spying risk to Western infrastructure networks. The US and China are already locked in a trade battle that has seen mounting tariffs, sparking fears the conflict will damage the global economy. Reacting sharply to Trump's move, Chinese Foreign Ministry spokesman Lu Kang told a media briefing here that China will take measures to defend the interests of Chinese companies. "We have noted the US department of Commerce decision. China always asks its business to comply with laws and regulations in export control and fulfil their international obligations. We always ask them to abide by other country's laws regulations in their overseas business," Lu said.