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As reported by Reuters, US President Donald Trump has signed off on an updated defense spending bill which includes watered-down measures on China, which China has already stated they will be conducting a “comprehensive assessment” on as it pertains to Chinese business interests.

Key quotes

“U.S. President Donald Trump signed a $716 billion defense policy bill on Monday that authorizes military spending and includes watered-down controls on U.S. government contracts with China’s ZTE Corp and Huawei Technologies Co Ltd.

Even though Trump said the bill “is the most significant investment in our military and our war-fighters in modern history,” Obama’s first three defense budgets were larger, when adjusted for inflation, according to Todd Harrison at the Washington-based Center for Strategic and International Studies.

Some lawmakers wanted to use the bill to reinstate tough sanctions on ZTE to punish the company for illegally shipping products to Iran and North Korea, but the restrictions included in the final National Defense Authorization Act, or NDAA, that passed Congress were weaker than earlier versions of the bill.

Trump has lifted an earlier ban on U.S. companies selling to ZTE, allowing China’s second-largest telecommunications equipment maker to resume business and putting him at odds with both Republican and Democratic lawmakers.

Leaders of U.S. intelligence agencies have said they are concerned that ZTE, Huawei Technologies Co Ltd and some other Chinese companies are beholden to the Chinese government or Communist Party, raising the risk of espionage.

The White House opposed putting stronger measures against the companies in the bill, and the measures were softened before lawmakers held their final vote.

The NDAA does strengthen the Committee on Foreign Investment in the United States (CFIUS), which reviews proposed foreign investments to weigh whether they threaten national security. That measure was seen as targeting China.