It's not clear how often or how broadly Beijing will use the law. But by complying with U.S. sanctions on China, businesses could face tough sanctions in China as a penalty for doing so.
The Trump administration issued tough export rules this month, which analysts say could spell a death knell for the company's worldwide mobile network ambitions.
"A China trade deal is dependent on one thing — do I want to make it," the president said, adding, "In some ways, I like the idea of waiting until after the election for the China deal."
Various government factions want to take different tacks toward the trade war. Some argue for cutting a deal quickly to save the economy, while others call for a war of attrition with President Trump.
President Trump's move came after Beijing announced tariffs on $75 billion worth of autos and other U.S. goods. In a tweet, he also "ordered" U.S. companies to stop doing business with China.
U.S. trade negotiators are heading to Shanghai for talks with their Chinese counterparts this week, but there appears to be little pressure for a settlement in the year-old conflict.
Some tech firms and researchers say plans to impose export restrictions on "emerging and foundational technology" would make it hard to thwart cyber threats and to cooperate globally in science.
The Dow Jones Industrial Average and other major stock indexes plunged Tuesday after Trump administration officials accused Beijing of reneging on commitments it had already made in the talks.
China and the U.S. are scheduled to continue trade talks in Washington this week, but U.S. officials go into the negotiations accusing China of "reneging" on its commitments.
China's government plays a large, powerful role in how its businesses operate — giving them preferential treatment over their rivals. That's a big sticking point in U.S.-China trade talks.