Beijing, China - China on Monday warned against unfair trade practices and called on the US to "immediately correct its wrongdoings" in relation to President Donald Trump's policy on Huawei and AI chips.

Beijing on Monday warned that Washington is undermining trade agreements made last week by singling out Huawei and issuing a warning against the use of Chinese chips in US goods.

The US Department of Commerce (DOC) last week warned of the risks associated with "using PRC advanced-computing ICs, including specific Huawei Ascend chips."

"These chips were likely developed or produced in violation of U.S. export controls," the DOC said in official guidance published on the Bureau of Industry and Security website.

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China warned that such guidance is "discriminatory" and distorts the market against Beijing, potentially undermining progress made in talks last week.

"China urges the US to immediately correct its wrong practices," said a spokesperson for China's Ministry of Commerce in a statement translated from Simplified Chinese.

"If the U.S. insists on its own way and continues to substantially damage China’s interests, China will take resolute measures to safeguard its legitimate rights and interests."

The issue of Chinese chips could become a roadblock in the effort to reduce trade tensions, only a week after negotiations established a 90-day ceasefire in the trade war.

"The US abuses export control measures, tightens control over Chinese chip products on trumped-up charges, and even interferes with Chinese companies using chips produced in China," Beijing's spokesperson said.

"The US is overreaching, which is a typical unilateral bullying behavior. China firmly opposes it."