The U.S. is considering expanding the list of Chinese companies on a blacklist for U.S. suppliers amid escalating tensions between the two economic powers, according to a person familiar with the matter.

The Commerce Department is reviewing whether other Chinese firms should join Huawei Technologies Co. on its so-called entity list, this person said. Once a firm is added to that list, U.S. companies are restricted from doing business with it without obtaining a license — a sanction that can shut out foreign firms from doing business with U.S. suppliers.