A new report says China warned American tech companies not to comply with a U.S. Ban on sales of certain technologies to the country.
According to the New York Times, China told the tech giants that they would face consequences if they do halt sales.
Chinese officials also reportedly insinuated that the companies should lobby for changes to U.S. Policies.
The ban affects sales to the Chinese telecom giant Huawei, which purchases billions of dollars of tech from the U.S.
News of the ban sent the stocks of chip-makers tumbling.
However, they later recovered after the Commerce Department allowed companies a 90-day license to do business with Huawei.
Some analysts say that recovery may not last if China follows through with its threat.