The Trump administration on Friday moved to block global chip supplies to blacklisted telecoms equipment giant Huawei Technologies, spurring fears of Chinese retaliation and hammering shares of US producers of chipmaking equipment.

A new rule, unveiled by the Commerce Department and first reported by Reuters, expands US authority to require licences for sales to Huawei of semiconductors made abroad with US technology, vastly expanding its reach to halt exports to the world’s No 2 smartphone maker.