This archive report was first published on 26 December 2019.
Published on December 26, 2019, the US Defence Authorization Act has sparked controversy in China, with the country's commerce ministry slamming the legislation as containing 'adverse provisions' against Chinese enterprises.
The 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.
Chinese commerce ministry spokesman Gao Feng described the provisions as 'firmly opposed' by China, and warned that the country would 'pay close attention to the impact on Chinese enterprises' during the implementation of the bill.
The restrictions are 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.
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 has agreed to purchase $200 billion worth of American goods over the next two years as part of a mini-deal, but the Chinese side is yet to confirm the details.
The NDAA also calls for strengthening Washington's ties with Taiwan and support for Hong Kong's pro-democracy protestors -- measures which on Saturday Beijing said 'blatantly interfered' in its internal affairs.
