China firmly opposes the U.S. innovation and competition act, and enacts its own sanctions bill

China harshly criticized the U.S. Senate's passing of the “United States Innovation and Competition Act of 2021”, saying that the legislation is full of Cold War mentality, grossly interferes in China's internal affairs and is doomed to fail, urging Washington to halt the legislation to avoid further damaging China-U.S. relations and cooperation, the Global Times reports. The U.S. Senate voted 68-32 to approve the legislation authorizing about USD190 billion to strengthen U.S. technology and research. It would separately approve spending USD54 billion to increase U.S. production and research into semiconductors and telecommunications equipment, including USD2 billion dedicated to chips used by automakers. As the U.S. continued to step up its aggression against China in a wide range of geopolitical and trade areas recently, including imposing sanctions on more Chinese businesses and products, pressuring allies against China and interfering in China's internal affairs regarding Taiwan, the National People's Congress (NPC) also enacted an anti-foreign sanctions law, providing legal and institutional support to counter foreign sanctions and interference.

In a harshly worded statement, the Foreign Affairs Committee of the National People's Congress (NPC), China's top legislature, expressed its strong dissatisfaction and firm opposition to the U.S. bill, which fabricates the so-called “China threat” to preserve the U.S.' global hegemony and seeks to deprive China of its legitimate development rights through technological and economic "decoupling," according to the Global Times. “At a time when the world is entering a period of turbulence and change, the practice of treating China as an 'imaginary enemy' at every turn is against the general trend of the world, unpopular around the world and doomed to fail," reads the NPC's statement. The U.S. legislation includes a ban on U.S. officials attending the 2022 Beijing Winter Olympic Games over so-called human rights concerns in Xinjiang. The bill is now heading to the U.S. House of Representatives for reconciliation with the Senate version and passage before reaching the desk of U.S. President Joe Biden. Once adopted, it would mark a serious escalation in the U.S. ever-broadening containment campaign against China, analysts said, according to the Global Times. The bill showed the “paranoid delusion of wanting to be the only winner, and distorted the original intention of innovation and competition”, the statement said. “It uses human rights and religion as excuses to interfere in China’s domestic affairs, and deprive China of its legitimate rights of development through decoupling in fields including science and technology and the economy,” it said.

Provisions in the bill related to Taiwan, Xinjiang, Tibet and Hong Kong are purely China’s internal affairs and no foreign interference will be allowed, the statement added. “No force should expect that China will swallow any bitter fruit that undermines China’s sovereignty, security and development interests,” it said. Foreign Ministry Spokesman Wang Wenbin said: “We firmly object to the U.S. making an issue out of China and treating China as an ‘imaginary enemy’,” adding that the biggest enemy of the U.S. is the U.S. itself. “China follows the path of peaceful development. The goal of China’s development is to constantly improve ourselves and enable the Chinese people to live a happier and better life,” he said.

The statement came just before the NPC's Standing Committee passed the Anti-Foreign Sanctions Law, aiming to counter unilateral and discriminatory sanctions imposed by foreign governments on Chinese entities and individuals. The Committee only reviewed the law twice instead of the usual three times because there was consensus on all aspects of the draft law. The law went into effect immediately after being signed by President Xi Jinping. All 14 Vice Chairpersons of the NPC Standing Committee are under U.S. sanctions for passing the National Security Law in Hong Kong last year.

The law includes 16 articles, stipulating principles of punishment for violating the law, and names the authorities involved in enforcing it. Countermeasure may be enforced against individuals and entities that have taken discriminatory measures against Chinese citizens and organizations under the pretext of their domestic laws. Not only the individuals on the countermeasure list could be sanctioned, but also their relatives, and the organizations they lead. Penalties include denying visas or entry to China, deportation, freezing of property and restricting relevant transactions. If any organization or individual assists foreign countries to take discriminatory measures, Chinese citizens and organizations can file a lawsuit with the people's courts in line with the law to stop infringement as well as seek compensation for losses.

Meanwhile, U.S. President Joe Biden has withdrawn a series of executive orders that sought to ban downloads of WeChat and TikTok and ordered a new Commerce Department review. The Administration of former President Donald Trump had attempted to block users from downloading and using the apps in the United States. The orders never took effect as the courts blocked them. Biden’s new executive order revokes the old orders, along with another one issued in January that targeted eight communications and financial technology software applications. A separate U.S. national security review of TikTok remains ongoing.

Trade talks, however, are continuing. China's Commerce Minister Wang Wentao and U.S. Commerce Secretary Gina Raimondo had a “candid and pragmatic” exchange of views on relevant issues of mutual concern in the business sector on June 10, following a virtual meeting between Chinese Vice Premier Liu He and U.S. Treasury Secretary Janet Yellen on June 2 and a phone call between Liu and U.S. Trade Representative Katherine Tai on May 27.

This overview is based on reporting by the China Daily, Shanghai Daily and Global Times.