U.S. Moving Forward With Rule to Limit Chips to Huawei

WASHINGTON—The Trump administration is moving ahead with new restrictions aimed at cutting off Chinese telecom-equipment maker Huawei Technologies Co. from one of its main suppliers of advanced semiconductors, according to people familiar with the situation.

At a meeting on Wednesday, top cabinet officials agreed to advance a proposal to hobble Huawei, according to these people. The U.S. alleges Huawei gear could be used by Beijing to spy globally, which Huawei has repeatedly denied.