The US said it would work with allies to address "distortions of the memory chip market caused by China’s actions" after China's cyberspace regulator announced products made by memory chipmaker Micron failed its network security review.

China said it would bar operators of key infrastructure from buying from the firm.

"We firmly oppose restrictions that have no basis in fact," a spokesperson from the US Commerce Department said in a statement.

"This action, along with recent raids and targeting of other American firms, is inconsistent with (China's) assertions that it is opening its markets and committed to a transparent regulatory framework."