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"China is strongly dissatisfied and resolutely opposes the rejection, as the US government tried to mix the concepts of the surrogate country approach and market economy status to mislead the public," the ministry said in a statement.

"China has worked on similar regulations in the past, but the key is in the fine details and the severity of the punishment," he said. "Defining the rules and operational mechanisms for the ethics review board is also a very important and specific task."

"China and the United States can have competition but should not view each other with a Cold War mentality. Nor should they slip into the trap of a zero-sum game," Wang was quoted as saying in a Foreign Ministry press release.

"China has a large number of small and micro-businesses, and this helps create a large number of jobs in China," she said. "Yet such businesses also have clear disadvantages, such as being vulnerable to risks. This requires the government to give them more policy support, especially tax incentives, to help them grow steadily."

"But not all the de facto orphans have those issues," he said.