China angered at new U.S. defense act, to assess content
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[August 14, 2018]
By Ben Blanchard
BEIJING (Reuters) - China on Tuesday
condemned measures targeting it in a new U.S. defense act, saying it
exaggerated antagonism and that Beijing would take a close look at
aspects that beef up the role of a U.S. panel that reviews foreign
China's complaints about the act come as the world's two biggest
economies engage in an increasingly bitter fight over trade, levying
tariffs on each others' products.
U.S. President Donald Trump signed a $716-billion defense policy act on
Monday that authorizes military spending and waters down controls on
U.S. government contracts with China's ZTE Corp and Huawei Technologies
Co Ltd .
The National Defense Authorization Act, or NDAA, strengthens the
Committee on Foreign Investment in the United States (CFIUS), which
reviews proposals to determine if they threaten national security. That
measure was seen as targeting China.
China's Commerce Ministry said it had noted the inclusion of CFIUS in
the act and would "comprehensively assess the contents", paying close
attention to the impact on Chinese firms.
"The U.S. side should objectively and fairly treat Chinese investors,
and avoid CFIUS becoming an obstacle to investment cooperation between
Chinese and U.S. firms," the ministry said in a statement.
Chinese and U.S. companies seek greater cooperation on investment, it
added, urging the two countries' governments to heed the voices of their
companies, and provide a good environment and stable expectations.
Monday's legislation also calls "long-term strategic competition with
China" a top priority for the United States, which should improve the
defense capabilities of self-ruled Taiwan, claimed by China as a wayward
In a separate statement, China's foreign ministry said the United States
passed the act despite China's strong objections and it was dissatisfied
with the "negative content related to China".
[to top of second column]
U.S. President Donald Trump holds up the National Defense
Authorization Act after signing it in front of soldiers from the
U.S. Army's 10th Mountain Division at Fort Drum, New York, U.S.,
August 13, 2018. REUTERS/Carlos Barria
China urges the United States to abandon Cold War thinking and correctly and
objectively view relations, and not implement the act's negative clauses about
China, so as to avoid harming cooperation, the ministry added.
China's Defense Ministry also weighed in, saying the act "exaggerated Sino-U.S.
antagonism", damaged trust between the two militaries and involved the most
important and sensitive issue in bilateral ties, namely Taiwan.
"We will never let any person, at any time or in any form split Taiwan off from
China," it added.
In Taipei, Taiwan's Foreign Ministry thanked the United States for its
Taiwan would "continue to actively coordinate with the U.S. government to stably
deepen the security partnership between Taiwan and the United States on a
mutually beneficial basis", Taiwan's foreign ministry said.
The United States has no formal ties with Taiwan but is the island's strongest
ally and sole foreign arms supplier.
Taiwan President Tsai Ing-wen is visiting the United States this month, stopping
off first in Los Angeles and then in Houston on her way to and from Paraguay and
China has complained to Washington about the visits.
(Reporting by Ben Blanchard; Additional reporting by Michael Martina, Yi-Mou Lee
in Taipei, and Andrew Galbraith in Shanghai; Editing by Sam Holmes, Clarence
Fernandez and Michael Perry)
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