Chinese telecommunications company Huawei is planning to lay off jobs at its U.S. development subsidiary Futurewei technologies, the Wall Street Journal reported.

Around 850 people are employed at Futurewei in states such as Texas and California.

Some Huawei employees have reportedly already been laid off and hundreds more could be next.

Huawei declined to comment to the Journal.

The Trump administration blacklisted Huawei cellphones and other products in May due to spying concerns.

The blacklist has paralyzed Huawei, as U.S. tech companies cannot legally sell them products. In June, the company scrapped the launch of its Matebook laptop because it receives software from Microsoft and chips from Intel.

Tensions between the U.S. and China grew over Huawei in December after Meng Wanzhou, the company's chief financial officer and daughter of the company's founder, was arrested in Vancouver, Canada, at the request of U.S. law enforcement. A grand jury in January charged Huawei and Meng with money laundering, bank fraud, wire fraud and conspiracy.

China has demanded Meng's return.

Huawei was also indicted for stealing trade secrets from T-Mobile after the U.S. telecommunications giant filed a civil lawsuit against Huawei in 2014 over "Tappy," a robot used for testing smartphones.

At the G20 summit in June, Trump said he would allow some U.S. exports to Huawei to resume.

The Trump administration is currently in a trade war with China, imposing tariffs of 25% on an estimated $200 billion of Chinese imports. China retaliated with its own tariffs, most of which have hurt American farmers.

At the G20 summit, Trump and Chinese President Xi Jinping agreed to put a hold on new tariffs until future negotiations.

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