Hong Kong (CNN Business) Chinese markets sagged Friday as renewed trade fears sent tech stocks plunging.

ZTE ZTCOF The losses came after the United States moved forward with a ban that restricts federal purchases from five Chinese tech companies, including Huawei and ZTE, in led the way with a nearly 8% drop.The losses came after the United Statesmoved forward with a ban that restricts federal purchases from five Chinese tech companies, including Huawei and ZTE, in an escalating confrontation between the two countries.

China's Ministry of Foreign Affairs slammed the decision on Thursday, calling it "discriminatory and unfair" and vowing to take "all necessary steps to protect legitimate interests of Chinese companies."

"Fears have escalated and investors worry the trade confrontations are getting increasingly worse," said Mark Huang, an analyst at Bright Smart Securities in Hong Kong.

Also weighing on tech shares was a report from Bloomberg that said the White House plans to delay a decision on granting licenses that would allow US companies to continue selling some technology to Huawei.

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