The U.S. has banned technology exports to Chinese companies over the past two years, and the move, that was designed to curb China, is now actually hurting American businesses, Andy Purdy, chief security officer at Huawei Technologies USA Inc. wrote for Fortune last Sunday.

Huawei is one of the Chinese companies placed on a blacklist by the Trump administration. It was one of the biggest buyers of the U.S. chips, which spent around $12 billion a year in the U.S. and contributed 40,000 jobs, according to Purdy.

The company had planned to buy over $20 billion worth of components from U.S. suppliers last year, but was banned by the export controls, said Hu Houkun, Huawei's rotating chairman.

The supply chain curbs will force non-American companies like Huawei to de-Americanize their supply chains, the potential harm of which will extend far beyond job losses and corporate profits, Purdy said.

The U.S. defense and treasury departments said it would also hurt U.S. companies' ability to fund new research and development (R&D), which is of great significance to the U.S. defense industrial base.

It is because that investment in American companies' R&D is sourced from their revenue of chip sales to foreign companies like Huawei. When revenue decreases, so does their ability to invest in R&D, Purdy explained.

Purdy added the export restrictions could erode innovation, as the split between the U.S. and China in the digital world would balkanize the technical standards for global collaboration.

Former Google CEO Eric Schmidt also warned that the U.S. innovation will be weakened by "closing off the U.S. to the ideas, people, technologies, and supply chains necessary to compete effectively."