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Trade & Investment

China condemns US “protectionist methods” over cyber espionage fears


U.S. President Barack Obama signs the ''omnibus'' spending bill in Washington January 17, 2014

U.S. President Barack Obama signs the ”omnibus” spending bill in Washington January 17, 2014

China‘s Commerce Ministry has condemned a $1.1-trillion spending bill passed by the U.S. 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 U.S. 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 U.S. 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 U.S. firms, it added.

“We have noted that U.S. business groups have already made noises opposing the bill. The U.S. side should correct its mistaken ways, and create good conditions for the healthy development of Sino-U.S. trade and business cooperation.”

Last year’s funding legislation bars U.S. 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.

U.S. 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.

“A slightly modified version of this language was continued again this year by bipartisan agreement with the Senate, and I believe it should be maintained and expanded to all civilian federal agencies in the year ahead,” Wolf said in a statement on Friday.

U.S. curbs on foreign access to satellite technology since 1999 have effectively banned the export, re-export or transfer of this equipment or know-how to China.

The restriction followed a 1996 Chinese rocket launch accident that claimed a U.S.-manufactured satellite. In the course of the investigation, the company was accused of inadvertently transferring restricted technology to China.

But there were no new curbs on satellite exports in the latest spending bill, Kevin Wolf, a U.S. Commerce Department official, told Reuters in Washington.

“Since the late 1990s, there has been, under U.S. law, an absolute prohibition on the export and re-export to China of all satellites and related items,” said Wolf, who is no relation to the congressman. “This was reconfirmed in the National Defence Authorisation Act of 2013.”

“The Chinese have complained about it a lot over the decades – that’s not new,” he said on Saturday.

China and the United States have clashed repeatedly over trade issues.

Source: Reuters – China decries U.S. spending bill
 

 

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About chankaiyee2

Author of the book "Tiananmen's Tremendous Achievements" about how with the help of Tiananmen Protests, talented scholars with moral integrity seized power in the Party and state and brought prosperity to China. The second edition of the book will be published within a few days to mark the 25th anniversary of Tiananmen Protests All the parts in the first edition remain in the second edition with a few changes due to information available later and better understanding. There are also some changes for improvements of style. The new parts are Chapters 12-19 on events in China after the first edition was published: The fierce power struggle for succession between reformists and conservatives; Xi Jinping winning all elders’ support during his mysterious disappearance for 2 weeks in early September, 2012; and Xi Jinping Cyclone. Chan Kai Yee's new book: SPACE ERA STRATEGY: The Way China Beats The US An eye-opening book that tells the truth how the US is losing to China. The US is losing as it adopts the outdated strategy of Air-Sea Battle while China adopts the space era strategy to pursue integrated space and air capabilities: It is losing due to its diplomacy that has given rise to Russian-Chinese alliance. US outdated strategy has enabled China to catch up and surpass the US in key weapons: Hypersonic weapons (HGV) that Pentagon regards as the weapon that will dominate the world in the future. Aerospaceplane in China’s development of space-air bomber that can engage enemy anywhere in the world within an hour and destroy an entire aircraft carrier battle group within minutes. Anti-satellite (ASAT) weapons, anti-ASAT weapons, stealth aircrafts, drones, AEW&C, etc. The book gives detailed descriptions of China’s weapon development based on information mainly from Chinese sources that the author monitors closely. U.S. Must Not Be Beaten by China! China is not a democracy. Its political system cannot prevent the emergence of a despotic leader or stop such a leader when he begins to bring disasters to people. A few decades ago, Mao Zedong, the worst tyrant in world history did emerge and bring disasters to Chinese people. He wanted to fight a nuclear war to replace capitalism with communism but could not bring nuclear holocaust to world people as China was too weak and poor at that time. If a despot like Mao Zedong emerges when China has surpassed the US in military strength, world people will suffer the misery experienced by Chinese people in Mao era. China surpassing the US in GDP is not something to worry about as China has the heavy burden to satisfy its huge population, but China surpassing the US in military strength will be world people’s greatest concern if China remains an autocracy. US people are of much better quality than Chinese people. What they lack is a wise leader to adopt the correct strategy and diplomacy and the creative ways to use its resources in developing its military capabilities. I hope that with the emergence of a great leader, the US can put an end to its decline and remain number one in the world. China, US, space era strategy, air-sea battle, space-air bomber, arms race, weapon development, chan kai yee

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