China opposes new US defence act over trade restrictions
Beijing yesterday said it “firmly opposes” trade restrictions included in a new US defence act, having already admonished the bill for interfering in China’s internal affairs.
The National Defense Authorisation Act (NDAA) – 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 bruising nearly two-year trade war, with a “phase-one” deal that has rolled 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,” Chinese commerce ministry spokesman Gao Feng said at a regular briefing.
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.
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. -AFP