The U.S. legislature adopted a defence bill against China – restrictions on biotechnology and investment

chiny24.com 1 month ago

New defence Act: wider restrictions on China

United States legislature adopted by a large majority “National defence Authorization Act” (NDAA) for the year 2026 – a law establishing the policy of the Department of Defence with value USD 901 billion. The paper that went to the White House, where it was signed by president Donald Trump, contains a number of provisions against China, especially in the biotechnology, artificial intelligence, semiconductors and hypersonic technologies sectors.

Key provisions for China

1. Prohibition of cooperation with Chinese biotechnology companies

Act forbids national agencies to cooperate with biotech companies that will be considered by the Office of Management and Budget to be "biotechnologies presenting a threat" (Biotechnology companies of concert). The prohibition besides includes companies belonging to Pentagon’s 1260H Chinese military letter, where he presently stands, among others. BGI Group.

2. Extension of the abroad investment control mechanism

NDAA codify and extend existing restrictions for US investments in dual-use technologies in China, now including besides hypersonic technology. This mechanics besides applies to Cuba, Iran, North Korea, Russia, Venezuela, Hong Kong and Macau.

‘The Act gives the Treasury Department powers to studies of past transactions and forcing disinvestment, if investments were in breach of regulations”, H.K. Park, Crumpton Global.

3. Support for Taiwan

Right increases the financing of safety cooperation with Taiwan au 300 million to 1 billion USD, and besides orders the Pentagon creation of a joint drone programme with Taiwan – which sparked a sharp reaction from Beijing, which treats the island as part of its territory.

4. Restrictions on equipment purchases

The Pentagon has rid yourself of Chinese computers and printersand solar panels, inverters and halt utilizing critical minerals Chinese. The Act besides orders TP-Link hazard assessment, Chinese maker of routers.

Bipolarity: legislature vs. White House

The Act discloses a gross split between Congress and Trump Administration:

NDAA accept rigid, confrontational attitude to China, treating them as strategic military rival,
Meanwhile National safety strategy (NSS), published by the White home earlier, significantly softens the tonefocusing on Economic cooperation and avoiding direct references to Beijing in the context of security.

Derek Grossman of the University of confederate California explains this discrepancy as the effect of the Treasury Secretary Scott Bessent's influencewho fears that tensions with China disrupt preparations for Trump–Xi summit in April 2026.

China's consequence and global consequences

Chinese Embassy in Washington DC "strongly opposes" Anti-Chinese legislation, calling for "open, fair and non-discriminatory business environment".

Analysts point out that 1260H extension may discourage 3rd country companies to cooperate with Chinese entities – even outside China – due to the fact that reputational hazard and access to the US market.

Company BGI Group She refused to comment, but previously identified akin initiatives as actionswhich straight “enhance the monopoly of American genetic giants”.

NDAA 2026 constitutes U.S. Congress' most comprehensive legal impact on Chinese technology since the start of the trade war. Although Trump strives to Economic agreementsCongress systematically builds a regulatory barrierwho has prevent the transfer of critical cognition to China – especially in areas that can service both civilian and military development. At the same time, the paper seems to indicate that American legislators inactive do not realize the constructions of modern supply chains, and so cannot see that any of their decisions are hitting the United States alternatively than China or another 3rd countries.

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