Huawei warns U.S. that China will strike back

Huawei has a warning for Washington.

It says China will strike back against new U.S. restrictions on the firm.

The comments come as the world's largest maker of telecoms equipment reported its weakest annual profit growth in three years.

Net profit for 2019 came in at just under 9 billion dollars - up just 5.6%, compared to a 25% jump a year earlier.

Huawei has been hit hard by U.S. restrictions.

Washington says its gear is open to access by Chinese spies - a charge the firm strongly denies.

Donald Trump's administration is now preparing fresh measures to limit the supply of chips to the firm.

But Huawei's chairman says Beijing is sure to retaliate.

Eric Xu says it could ban smartphones and other gear made by U.S. firms.

Tuesday (March 31) also saw a glimmer of hope for the sector though, at least in China.

Huawei rival Xiaomi says it sees signs that phone sales are getting back to normal there.

After tumbling due to the coronavirus outbreak, the firm says sales are now 80% or 90% recovered.