China Voices Its Opposition to U.S. Budget Bill

While Washington breathed a sigh of relief that the U.S. Congress was able to approve a US$ 1.1 trillion spending package last week, Beijing condemned the bill as being "against the principles of fair trade."

The bill provides funding for every government agency until next October, including language requiring all federal agencies to get approval before buying any Chinese technology. 

The approval requirement mirrors similar language in last year's spending package which forbid NASA and the Departments of Justice and Commerce from purchasing technology without first having a risk assessment of the purchase by federal authorities for any technology vendor that is "owned, directed or subsidized by China."

That language was included due to the concerns of some that Chinese technology vendors Huawei Technologies and ZTE Corporation might leave backdoors in their equipment that could later be exploited by the Chinese military.

According to a statement released by the Chinese Commerce Ministry, this year's "bill sent the wrong message" and was not conducive to facilitating Sino-US high-tech cooperation and exchange. The bill would also be harmful to both US and Chinese businesses operating in that space, it added. 

The Commerce Ministry said that the language in the current spending bill seeks to limit the purchase of Chinese technology and eliminate the export of U.S. satellite technology and parts to China.

The Commerce Ministry also said that its opposition to the language is supported by a number of US businesses that have also voiced their opposition to the bill.

However, according to an official at the U.S. Department of Commerce, the export and re-export of satellites and "all related items" to China has been prohibited since the late 1990s.

The bill was signed into law by President Obama on Friday.