"Huawei has denied those charges, and its chief executive [Ren Zhengfei] has said he would shut down the company rather than obey Chinese government orders to intercept or divert Internet traffic", the New York Times wrote.
Huawei denies it has strong ties to the Chinese government.
The U.S. has been lobbying European allies to ban Huawei from 5G networks over concerns China's leaders could force it to use its equipment for cyberespionage.
The ban on United States companies selling parts to Huawei will take effect on Friday, the U.S. commerce secretary has said.
The executive order does not name any company, but it's believed that the move is expected to precede a ban on USA firms doing business with the Chinese telecommunications company, Huawei. The company criticized the move as "unreasonable".
Speaking at a U.S. Senate Appropriations subcommittee hearing, Mnuchin characterized two days of high-level talks with Chinese officials in Washington last week as constructive.
"U.S. technological leadership is no longer undisputed", he said.More news: Cardinals CB Patrick Peterson Suspended 6 Games For 2019 Season
He did not say when his China trip might take place. Although it has market dominance in much of Europe, the telecommunications giant still wishes to eat away at Apple's market share.
American suppliers also need Chinese customers.
Both Huawei and the Chinese government condemned the Trump administration moves. China will also try to ensure that Chinese-led and -developed standards in the tech sector are adopted worldwide so that Chinese companies can sell their products in foreign markets without fear of the United States claiming patent infringement.
US agricultural goods have been targeted by China's retaliatory tariffs, and American farmers, a key political constituency for Trump, are anxious.
The Trump administration had pledged up to $12 billion in aid to help offset losses resulting from Chinese tariffs. The addition makes the US companies not to sell or transfer technology to Huawei without a license issued by the BIS.
But trading partners and close allies in Europe, North America and Asia are also in the USA administration's sights.
The U.S. crackdown, announced on Wednesday, was the latest shot fired in a U.S.More news: Talks with protesters suspended: Sudanese army ruler
Qualcomm, for example, got two thirds of its sales from China in its most recent fiscal year. But she told reporters later that ratification of the agreement would be hard as long as the tariffs remain in place. "U.S. technological leadership is no longer undisputed", he said.
The Trump administration's decision to target and potentially cripple Huawei garnered a sharp rebuke on Thursday.
Officials said that "interim regulations" were expected before final rules were set, but were vague on what that meant. It runs research and development bases around the world in an effort to wean itself off of high-end US components. Last year, Trump acted on the report and imposed a 25% tariff on steel and a 10% tariff on U.S. aluminum imports.
As negotiations toward resolving the trade war stalled last week, the United States ramped up the pressure by raising tariffs on a list of $200 billion worth of Chinese imports to 25% from 10%, prompting China to retaliate with higher duties on a revised list of $60 billion worth of USA products.
Trump could launch 25% tariffs on another $300 billion worth of Chinese goods when he meets Xi next month.
On May 15, the United States upped the ante yet again in its economic disputes with China.
Beijing is vowing not to succumb to US pressure.
But leading analysts downgraded their assessments for several USA microchip companies on Thursday. Other data showed a drop in USA industrial production.More news: State Dept. Orders Evacuation of Non-Emergency US Government Employees from Iraq