A statement issued on Friday said Huang and his company QSL Sports were pulling out of takeover talks with the club.
The statement did not elaborate on Huang's reasons for withdrawing from negotiations to buy the Anfield club.
"We thank the many Liverpool fans who expressed support for our efforts and wish the club great success in the years to come," Huang said.
"I am now considering my future options and will be making no further comment at this time."
It was reported earlier this week that Huang was growing impatient with the Anfield board, who are carrying out due diligence on a number of bids received.
Huang's bid to buy Liverpool from American owners Tom Hicks and George Gillett is thought to have valued the club at around £325m.
His decision to go public with his bid was followed by another declaration of interest from a consortium fronted by Syrian businessman Yahya Kirdi.
Huang had pledged to clear Liverpool's debts and give manager Roy Hodgson funds to spend in the transfer market.
Liverpool were put up for sale by Hicks and Gillett in April with debts of £351.4m.
The Royal Bank of Scotland, their largest creditor, are thought to be owed around £237m with a penalty fee of £60m due if it is not repaid by 6 October.
British Airways boss Martin Broughton, who was brought in as chairman in April to facilitate a sale, has been formally notified of the decision.
Huang was the first party to openly declare and interest in buying the Merseysiders, but refused to comment when it was claimed his bid was backed by the Chinese government.
He added: "Over the past few months we learned first hand that Liverpool has a very special place in the hearts of millions of fans around the world.
"We concluded that a plan that properly capitalises the business and provides funds for a new stadium and player related costs would allow Liverpool FC to provide its great fans with the success they deserve.
"Our strategy and unique ability to expand the fan base in Asia would also have been of benefit to all.
"We regret that we will not have the opportunity to implement this strategy."
Source: BBC Sport