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China slams new US defence Act over trade restrictions

This article is more than 12 months old

BEIJING: China yesterday said it "firmly opposes" trade restrictions included in a new US defence Act, having already admonished the legislation for interfering in China's internal affairs.

The National Defense Authorization Act - signed into law last week - bars the use of federal funds to buy railcars and buses from China, and slows the lifting of sanctions on tech giant Huawei.

It comes as Beijing and Washington have agreed to a temporary truce in their trade war with a phase one deal.

"We have noted the US defence authorisation Act... contains a number of adverse provisions against Chinese enterprises, which China firmly opposes," Chinese Commerce Ministry spokesman Gao Feng said.

It is expected to dent the bottom lines of two Chinese companies: state-owned railcar maker CRRC and BYD Motors, which sells electric buses in the US.

New restrictions prevent Washington from taking Huawei off a US Commerce Department list that bans US companies from working with it without specific exemptions.

US intelligence chiefs claim Huawei's equipment is a threat to national security.

"China will... take all necessary measures to protect the legitimate rights and interests of Chinese enterprises," Mr Gao said, without offering details of possible countermeasures. - AFP

BUSINESS & FINANCE