The US Congress has passed the $716 billion defense policy bill but has removed a few features from it that includes strict measures that banned China from allegedly meddling in internal government affairs, most specifically the removal of importation of the White House from Chinese technological companies.
The John S. McCain National Defense Authorization Act (NDAA) passed through the Senate 87-10. It creates spending approval for the military, but there is a set of laws in it that gives credence to doing a lot of other things. Reuters said that most specific in these rules is the power to control stipulations in government contracts that the US has entered with China. Currently, the government is showing a dislike towards the country borne out of the need to protect its own interests, economic or otherwise.
The bill puts into measure controlling the contracts with Chinese companies ZTE Corp and Huawei Technologies Co. Ltd. While the government harbors legitimate concerns on the actions of both these companies, the finished bill turned out to be more liberal than expected, with the restrictions imposed on these companies even weaker than in the first drafts.
Initially included in these provisions, WSJ reports is China's exclusion from several military exercises. For instance, they are barred from joining the Rim of the Pacific Exercise (RIMPAC), the largest peacetime multi-nation naval drill in the world. Aside from that, telecom companies from China are banned from supplying equipment to the defense and security branches of the government.
The bill is supposed to give US defense greater powers in protecting the Indo-Pacific region. Aside from that, it also aims to give China little room for breathing space in the case of espionage and other illicit activities. It also develops its relationships with countries in the Pacific, including Australia, Japan, and India, all in the name of bouncing back against what it cites as dangerously "aggressive" military behavior by China.
While the US Congress has collectively agreed that China's behavior is bad for the country's interests, the reason why the bill was edited to be more lenient is that of Trump. The Republicans dominate both the House and the Senate. They were able to soften the bill even before Congress voted on the final provisions.
The bill was named in honor of John McCain, the chairman of the Armed Services Committee. He is also a decorated war veteran as well as a former nominee of the Republican party for the presidency.