The US-China Business Council has criticised the new cyber security law which was meant to prevent US agencies to buy IT products from Chinese companies over security concerns.
The law bars several government entities including the NASA space agency, the Justice and Commerce departments and the National Science Foundation from purchasing information technology systems from China.
As per the law, the government entities are required to get approval from law enforcement officials on whether there is any associated risk of cyber-espionage or sabotage with the system.
It will focus on whether the systems are produced, manufactured or assembled by one or more entities that are owned, directed or subsidised by China.
The US-China Business Council president John Frisbie urged the leadership of both parties to ensure that similar provisions are not included in subsequent appropriate measures.
Frisbie said that the national security of the US is critical, but it must not be used as a means of protectionism.
"Product security is a function of how a product is made, used, and maintained, rather than by whom or where it is made," Frisbie added.
"Imposing a country-specific risk assessment creates a false sense of security if the goal is to improve our nation’s cybersecurity."