It certainly does. China along with India and Austria are furious witht the US over this.
Everyone should note that this is an Internal US Law being enacted not an International one. No referrals have been made to any Anti-proliferation bodies and all the information available from India and Austria seems to show that the offending deals conformed to International Law. No information is available from China on these matters, but given the lack of other fuss and granting the principle of Innocent until proven Guilty, I think we can safely assume that the Chinese deals conform to International law as well.
So what is this about?
It looks like yet another sad downward step by the USA as it slowly starts to sink into a morass of Protectionism, Isolationisem and probably what will prove to be the longest continous sulk by any nation in history.
For China this looks set to become yet another diplomatic victory, as it illustrates to the rest of world (especially the developing world) how China adheres to International development and co-operation, whilst the US wallows in Unilateralisem. Just the message in fact the PRC has been broadcasting to the world in its recent "Peaceful Road of Development" Policy Document.