The Chips and Science Act passed by the U.S. Congress contains provisions that restrict relevant companies' normal economic, trade and investment activities in China, which is discriminatory and will distort the global semiconductor supply chain and disrupt international trade, China's Ministry of Commerce said on August 18.

The U.S. legislation is a typical differentiated industry supporting policy with huge sums of subsidies to be provided to the U.S. chip sector, ministry spokesperson Shu Jueting told a press conference.

The U.S. bill should be implemented in accordance with relevant WTO rules and the principles of openness, transparency and non-discrimination, and be conducive to maintaining the security and stability of global industrial and supply chains and avoiding fragmentation, Shu said.

China firmly opposes the bill and will continue to follow the progress of its implementation, Shu said, adding that China will take forceful measures to safeguard its legitimate rights and interests when necessary.