BEIJING/WASHINGTON: China’s Commerce Ministry has condemned a $1.1-trillion spending bill passed by the US Congress last week over clauses that limit technological purchases from the Asian giant, saying they clash with the principles of fair trade.
The bill, signed by President Barack Obama on Friday, included a cyber-espionage review process for federal purchases of technology from China, a measure incorporated last year amid growing US concern over Chinese cyber attacks.
In a weekend statement, China’s Commerce Ministry said the move “went against the principles of fair trade” as it sought to curb purchases of Chinese technology and export of satellites and parts to China.
“China is resolutely opposed,” the ministry said in comments attributed to an unnamed official in its US trade division.
The bill sent a wrong message, did not aid exchanges and cooperation in the high-tech field and would have a negative effect on Chinese companies, besides harming the interests of US firms, it added.
“We have noted that US business groups have already made noises opposing the bill. The US side should correct its mistaken ways, and create good conditions for the healthy development of Sino-US trade and business cooperation.”
Last year’s funding legislation bars US space agency Nasa and the Justice and Commerce Departments from buying information technology systems without the approval of federal law enforcement officials.
That formal assessment must include “any risk associated with such system being produced, manufactured or assembled by one or more entities that are owned, directed or subsidised” by China, it says.
US Representative Frank Wolf, the Republican chairman of the House Appropriations Commerce-Justice-Science subcommittee, said he directed the language to be included last year because of concerns about potential cyber threats from Chinese firms such as Huawei Technologies Co Ltd and ZTE Corp.
Wolf cited a 2012 congressional intelligence report that found such firms were closely connected to China’s army, which coordinates cyber espionage against the United States.
Reuters
