Hikvision, with a market value of more than $37 billion, calls itself the world's largest video surveillance gear maker. Those talks have since stalled. Chinese firms such as Hikvision and Dahua are the world's largest purveyors of surveillance hardware, along with smaller rival Yitu Technology.
The people said that other companies may join the five under consideration on the so-called Entities List, which prohibits the sale of American technology without a special license.
Roach said that US measures against private companies signaled that the trade war, which intensified earlier this month, was moving away from being settled.
Hikvision has its products regularly tested for vulnerabilities and has received certifications for its cybersecurity standards, including the National Institute of Standards and Technology in the U.S., the company added.
A Dahua investment department employee declined to comment.
The White House did not respond to a request for comment.
Washington has also pressured allies and foes alike to avoid using Huawei for 5G networks that are to power everything from self-driving vehicles to robot surgery.
At the heart of Trump's concerted campaign is suspicion that Chinese firms aid Beijing in global espionage while spearheading its ambitions of becoming a technology superpower. The US Justice Department also accuses Huawei of wilfully violating sanctions on Iran, and past year engineered the arrest of the eldest daughter of Huawei's billionaire founder.
US Senator Marco Rubio and other senators last month sent a letter to US Secretary of State Michael Pompeo and US Secretary of Commerce Wilbur Ross urging them to impose sanctions against officials and firms "complicit in gross violations of human rights" in Xinjiang.
The Commerce Department's Bureau of Industry and Security also said last week it would add Chinese telecommunications and electronics company Huawei to its "Entity List", thereby prohibiting US companies from selling or transferring technology to Huawei without government approval. Current estimates indicate that anywhere from 1 million to 3 million Uighurs are now being held in China's concentration camps, according to the U.S. State Department.
The U.S. administration is considering Huawei-like sanctions on Chinese video surveillance firm Hikvision, media reports show, deepening worries that trade friction between the world's top two economies could be further inflamed.
A Huawei company logo is seen at Huawei's Shanghai Research Center in Shanghai.
Hikvision and Dahua have been among the biggest beneficiaries of Chinese President Xi Jinping's unprecedented push to keep tabs on his country's 1.4 billion people.
Hikvision has come under increased scrutiny by experts, rights organizations, and lawmakers over its role in the mass surveillance of the millions of Turkic-speaking Muslims in China's Xinjiang region, an area effectively rendered a police state.
Along with Dahua, it is a constituent of the MSCI Asia Pacific Index and is among Shenzhen stocks most owned by overseas investors.