US lawmakers are making progress on a bill that would limit the Pentagon's business dealings with companies that supply computer chips and services to Huawei Technologies Co.

The bipartisan National Defense Authorization Act, which was recently introduced, contains provisions that would effectively prevent Defense Department contractors from selling semiconductors, chip-making equipment, or semiconductor design tools to Huawei and its affiliates.

This action is part of a broader effort to increase pressure on suppliers connected to the Chinese tech giant, reflecting ongoing concerns about national security and technology transfer.

The potential consequences of this legislation could have a significant impact on Huawei's supply chain and its ability to obtain critical technology components, further isolating the company in the global market.