China denounced the U.S. Senate's approval of an innovation and competition law, saying the bill is full of Cold War mentality and ideological prejudice and interferes in China's internal affairs.

In a statement, the Foreign Affairs Committee of China's National People's Congress (NPC) expressed its strong dissatisfaction with the bill.

"It slanders China's development path and its domestic and foreign policies," The Washington Post quoted the NPC as saying.

The NPC claims the U.S. Innovation and Competition Act of 2021 fabricates "China treat" to preserve the U.S. global dominance.

It also accuses the U.S. of depriving China of its legitimate development rights through economic and technological "decoupling."

The top legislature of China is also moving forward with an anti-foreign sanctions policy that would give legal and institutional support to counter foreign interference and sanctions, the Global Times said.

The U.S. Senate passed a sweeping industrial policy legislation Tuesday aimed at countering the growing economic threat from China, pumping around $200 billion into manufacturing, technology, research and development.

The bill is also aimed at helping challenge China's rising military strength. It also allocates $300 million to counter China's growing political clout.

U.S. President Joe Biden has expressed support for the measure. "As other countries continue to invest in their own research and development, we cannot risk falling behind," he said, according to CNN.

The measure cleared the chamber on a 68-32 vote, but it still has to pass in the House. Once adopted, it would mark a deeper escalation in the U.S.'s containment campaign against China, political analysts said.