US Bill could hurt own interest: Chinese official

New legislation aiming to boost US competitiveness against China could damage relations between the two countries and end up hurting the United States more, warned a senior Chinese diplomat ahead of an annual political gathering of the Chinese leadership.

Mr Zhang Yesui, who was formerly ambassador to the US, did not say how the US could suffer from such actions, but stressed that stable bilateral ties are crucial to an effective response to global challenges such as climate change and the Covid-19 pandemic.

Lawmakers in Washington last month passed the America Competes Act - aimed squarely at China - which will channel US$52 billion (S$70.6 billion) into making semiconductor chips, US$45 billion to shore up supply chains and US$160 billion for scientific research and innovation.

"How the United States chooses to raise its competitiveness, including the R&D and manufacturing capacity of chips, is its own matter," Mr Zhang, spokesman for the Chinese legislature, told reporters at a news conference yesterday, the eve of the annual parliamentary session.

"But to use China's development as an excuse and take China as a strategic rival, this will only erode the mutual trust and cooperation between the two countries and will eventually hurt the US' own interests."

Last year, China fast-tracked the passage of a new anti-foreign sanctions law in response to a growing number of sanctions imposed by the US and Europe.

The law allows it to punish countries, companies and individuals who adopt discriminatory measures against China.

Calling it a "specialised legislation with a clear purpose", Mr Zhang yesterday justified the controversial law - which gives China the right to seize assets and deny visas - as necessary to safeguard the country's interests.

"China does not seek to provoke trouble but it will not flinch when trouble comes its way," he said. "This legislation is a defensive step to counter containment and oppression."

He was also asked about an ongoing trade dispute with Lithuania after the Baltic state angered Beijing by allowing Taiwan to open a representative office in Vilnius.

The European Union in January launched a case on behalf of Lithuania with the World Trade Organisation (WTO), accusing China of discriminatory trade practices such as blocking Lithuanian imports.

Blaming Lithuania for violating its commitment to the "one China" policy, which states that the People's Republic of China is the sole legal government of China, he dismissed allegations of economic coercion. The EU's WTO action is "not a constructive move", he said, urging the bloc to be impartial and not "expand the issue which is between China and Lithuania or escalate it to the level of China-EU relations".

China's Two Sessions or lianghui - a pair of meetings of its legislature and top advisory body - kicked off yesterday afternoon at the Great Hall of the People amid continued stringent Covid-19 controls to keep outbreaks in check.

Meeting times involving the 5,000 delegates have been kept short, and the entire political event has been capped at a week instead of the usual 10 days.

Premier Li Keqiang will be delivering his annual work report this morning and is expected to announce stimulus measures to bolster the economy, whose growth is expected to slow to about 5 per cent this year, from last year's 8.1 per cent.