China slams US defence Act over trade restrictions

Beijing, December 26

Beijing today said it firmly opposed 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 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,” Gao said, without offering details of the possible countermeasures. — AFP

To hold naval drills with Russia, Iran

Beijing: China, Russia and Iran will hold four-day joint naval drills starting Friday in the Gulf of Oman, Beijing said, at a time of heightened tensions since the US withdrew from a nuclear deal with Tehran. The exercises aim to “deepen cooperation between the navies of the three countries,” Chinese defence ministry spokesman Wu Qian said. AFP