[281219.EN.BIZ] China Blasts US Defence Act And Its Support For Hong Kong Protest

BEIJING said it "firmly opposes" trade restrictions included in a new US Defence Authorisation Act (NDAA), having already admonished the bill for interfering in China's internal affairs, reports Agence France-Presse.

The NDAA calls for strengthening Washington's ties with Taiwan and supports Hong Kong's pro-democracy protestors - measures which Beijing said "blatantly interfered" in its internal affairs.

The NDAA now bars the US to use 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 truce in their two-year trade war, with a "phase-one" deal to roll back tariffs on billions of dollars worth of goods.

"We have noted that the US Defence Authorisation Act contains a number of adverse provisions against Chinese enterprises, which China firmly opposes," said Chinese commerce ministry spokesman Gao Feng.

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

New restrictions contained in the bill prevent Washington from taking Huawei off a US Commerce Department list that bans American firms from working with the company without specific exemptions.

US intelligence chiefs claim Huawei's equipment is a threat to national security as the United States and other nations introduce next-generation mobile networks.

"China will pay close attention to the impact on Chinese enterprises during the implementation of the bill, and take all necessary measures to protect the legitimate rights and interests of Chinese enterprises," Mr Gao said.

US Trade Representative Robert Lighthizer had said China had agreed to purchase US$200 billion worth of American goods over the next two years as part of the mini-deal, but the Chinese side is yet to confirm the details.

"At present, China and the United States are carrying out the necessary procedures of legal review, translation and proofreading, and are in close communication on the subsequent steps toward signing the agreement," Mr Gao said.

Source : HKSG.