LONDON - Major British-based chip designer ARM is suspending business with China's Huawei to comply with U.S. regulations, the BBC reported on Wednesday, citing internal company documents.

ARM instructed employees to halt "all active contracts, support entitlements, and any pending engagements" with Huawei and its subsidiaries, the BBC said.

ARM, owned by Japanese investor Softbank, said in an internal company memo that its designs contained technology of U.S. origin.

(Reporting by David Milliken; editing by Michael Holden) ((david.milliken@reuters.com; +44 20 7542 5109; Reuters Messaging: david.milliken.thomsonreuters.com@reuters.net))