China Not Pleased With NDAA Export Control Provisions

The China Ministry of Commerce doesn't like provisions in the 2020 National Defense Authorization Act that target Huawei and ZTE. The law bars the Trump administration from lifting the Commerce Department Bureau of Industry and Security's addition of Chinese telecom equipment manufacturer Huawei to its export entity blacklist without congressional approval (see 19121700590). The law also requires reports to Congress on waivers issued to companies doing business with Huawei, and ZTE's compliance with a 2018 agreement that lifted Commerce's ban on U.S. companies selling telecom software and equipment to ZTE. “We have noticed that the U.S. National Defense Authorization Act for FY 2020 has been signed into law, which contains a number of unfavorable provisions for Chinese companies,” a ministry spokesperson said during a Thursday news conference, according to an unofficial translation. “China is firmly opposed to this,” he said. Specifically, “the Chinese side believes that the provisions of the act on restricting the purchase of Chinese products and tightening export control sanctions against Chinese enterprises are a bad example of state intervention in the normal business activities of enterprises, which is in stark contrast to the fairness, equality, and free trade promoted by the United States,” the spokesperson said. China plans to “pay close attention to the impact on the Chinese enterprises during the implementation of the 'Bill' and take all necessary measures to protect the legitimate rights and interests of Chinese enterprises,” he said. President Donald Trump signed the NDAA Dec. 20.