Canadian Manufacturing

China denounces US Innovation and Competition Act

China calls the Act a thinly veiled attack on China's political system and an attempt to hinder its development.

June 9, 2021  by Associated Press

The Foreign Affairs Committee of China’s ceremonial legislature, the National People’s Congress, issued a scathing statement on June 9 expressing its “strong dissatisfaction and resolute opposition” to the U.S. Innovation and Competition Act. The bill passed with overwhelming bipartisan support in the Senate on June 8.

“This bill seeks to exaggerate and spread the so-called ‘China threat’ to maintain global American hegemony, using human rights and religion as excuses to interfere in China’s domestic politics, and deprive China of its legitimate development rights,” the statement said.

“No force should expect that China will swallow any bitter fruit that harms China’s sovereignty, security or development interests,” it said. It echoed language used by President Xi Jinping, who has adopted an aggressive foreign policy that responds harshly to any perceived attacks on China’s reputation.

The statement also attacked provisions of the bill expressing support for Taiwan, the self-governing island democracy that China claims as its own territory; references to Hong Kong, where Beijing is accused of rolling back democracy; and criticism of Chinese policy in the northwestern territory of Xinjiang, the site of mass detentions of minority Muslim groups.

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Those and related issues are “purely China’s internal affairs and absolutely no foreign interference will be tolerated,” the statement said.

At a daily briefing, Foreign Ministry spokesperson Wang Wenbin said China-related content in the bill was “full of Cold War zero-sum thinking” which “distorts the facts (and) smears China’s development path and domestic and foreign policies.”

China has enacted various policy blueprints intended to enhance its own competitiveness and build its prowess in advanced technologies. Such plans tend to be focused entirely on the economy and business, areas where the ruling Communist Party and government play a huge role.

The centerpiece of the bill is a $50 billion emergency allotment to the Commerce Department to support semiconductor development and manufacturing through research and incentive programs previously authorized by Congress. The bill’s overall cost would increase spending by about $250 billion, with most of the outlays in the first five years.

China demanded Washington withdraw the order and said it was prepared to take “necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises.”

The executive order, which takes effect Aug. 2, is the latest indication that Biden has not softened the U.S. stance on alleged security risks from companies American officials say are linked to the Chinese “military and industrial complex.”


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