Japan’s Panasonic Corp said on its China website on Thursday it continues to supply Huawei Technologies Co Ltd normally.
The company had said earlier that it stopped shipments of certain components to Huawei, Reuters reported.
Last week the US put Huawei on a list of companies that American firms cannot trade with unless they have a license.
The ban applies to goods having 25 per cent or more of US-originated materials, according to reports.
The restrictions mark an escalation in US efforts to block Huawei, which it says poses a security risk, the BBC reported.
"Panasonic announced in [an] internal notification that it should suspend transactions with Huawei and its 68 affiliates that were banned by the US government," the firm said in a statement.
Last week the Trump administration added Huawei - the world's second largest smartphone maker - to its "entity list" which bans the company from acquiring technology from US firms without government approval.
The firm's founder Ren Zhengfei has downplayed the impact of US curbs on Huawei, but early signs suggest the fallout could be significant.
Google has barred Huawei from some updates to the Android operating system, meaning new designs of Huawei smartphones are set to lose access to some Google apps.
Japan's Softbank and KDDI have both said they will not sell Huawei's new handsets for now.
UK-based chip designer ARM told staff it must suspend business with Huawei, according to internal documents obtained by BBC.
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