The Chinese military expressed concern Tuesday for the new US defense funding bill signed by President Donald Trump, arguing it harms Beijing's interests and could compromise diplomatic relations.
"The U.S. side should objectively and fairly treat Chinese investors, and avoid CFIUS becoming an obstacle to investment cooperation between Chinese and U.S. firms", the ministry's statement read.
The NDAA also called "long-term strategic competition with China" a top priority for Washington and prohibited China from future Rim of the Pacific Naval exercises.
And in a move that could anger Beijing, the legislation provides that the USA should enhance support for the military capacity of Taiwan, the self-ruled island which Beijing considers a breakaway province to be taken back by force if necessary.
"We resolutely oppose any country having any forms of formal and military exchanges with Taiwan, this stance has been consistent and clear", Defense ministry spokesman Senior Colonel Wu Qian said.
Washington's flirtations with Taipei have always been a sore point in US-Chinese relations.
The Chinese Defense Ministry blamed the Americans of being stuck with "Cold War mentality" and exaggerating the level of differences between China and US.
The act, signed into law on Monday, comes at a time when Beijing and Washington are locked in an intensifying trade war that shows no signs of abating.
The National Defence Authorisation Act, or NDAA, strengthens the Committee on Foreign Investment in the United States (CFIUS), which reviews proposals to determine if they threaten national security.
In a separate statement earlier on Tuesday, the Chinese commerce ministry said it would conduct a comprehensive assessment of the bill, which includes watered-down controls on USA government contracts with China's ZTE and Huawei Technologies.
Taiwan President Tsai Ing-wen is visiting the United States this month, stopping off first in Los Angeles and then in Houston on her way to and from Paraguay and Belize.