China opposes new US defence act over trade restrictions
Beijing, Thursday
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.
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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
