Chinese telecom giant Huawei has said that the US government's order to bar US telecom companies from using federal funds to buy products from Huawei is "unlawful".

Its response came after the US Federal Communications Commission listed Huawei and its industry peer ZTE as so-called "threats to national security" and thus barred companies from using money from the its Universal Service Fund (USF), which is $8.5 billion every year, to purchase technology from the two Chinese companies.

The US government made the decision "based on selective information, innuendo, and mistaken assumptions," and it provided "no evidence that Huawei poses a security risk," according to a statement issued by Huawei, Xinhua news agency reported on Friday.

"These unwarranted actions will have profound negative effects on connectivity for Americans in rural and underserved areas across the United States," said Huawei.

"Many carriers rely on Huawei for its high-quality, market-leading, and cost-effective equipment and services," the company said.

On Monday, the US Department of Commerce extended a temporary license loosening restrictions on business deals with Huawei for another 90 days.

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"The Temporary General License (TGL) extension will allow carriers to continue to service customers in some of the most remote areas of the United States who would otherwise be left in the dark," said Secretary of Commerce Wilbur Ross in a statement.

Huawei said that "without access to those solutions, these carriers will lose their ability to provide reliable and high-speed telecommunications and internet services" and "rural schools, hospitals, and libraries will feel the effects". (IANS)