BEIJING (Reuters) - Chinese technology giant Huawei, which is threatening to lose Android because of US sanctions, on Friday introduced a new operating system to equip its mobile phones to compete with the Android operating system developed by the Internet and technology services company Google.

The system, dubbed "Harmonius", was presented by CEO Richard Yu at a Huawei conference in Dongguan, southern China.

"We want to bring more harmony to the world," he said, while Huawei was put on the US blacklist on suspicion of spying for Beijing.

Huawei, the world's second smartphone group, found itself in May amid a trade war between Beijing and Washington over technological competition.

Huawei has been trying since 2012 to have its own operating system.

Huawei Group, a leader in 5G, is on the black list of the US administration of President Donald Trump on suspicion of facilitating espionage of Chinese intelligence, a charge it vehemently denies.

China on Thursday denounced new rules announced by Washington late on Wednesday banning technology giant Huawei and other Chinese companies from signing contracts in US markets, accusing Washington of "abuse of power."

These temporary rules will prevent any US federal agency from acquiring telecommunications or technology equipment from those Chinese companies from August 13.

Huawei is also facing a ban on US companies for selling technology equipment. The ban is expected to come into effect in mid-January.

Huawei announced that it would challenge the measures before the US Supreme Court.