The legislation calls out China's "interference" in the succession process for the leader of Tibetan Buddhism.
The Buddhist leader doubled down on comments he made in 2015 when he said an unattractive female Dalai Lama would be useless.
"Ultimately they should develop their own country," said the 83-year-old Tibetan, himself a refugee from the Chinese repression of Tibet.
"He is exhausted after teaching for a long period of time," a spokesperson said.
"Our research findings are a far cry from many popular claims..."
The backlash from Beijing over a bipartisan congressional visit to the Dalai Lama in India comes as relations between Donald Trump and Xi Jinping are warming.
They spare over neighboring allies, and are at odds over their shared border and the Dalai Lama.
The spiritual leader believes Trump will tone down his divisive promises once in office.
The White House said Obama had a "great relationship" with the Dalai Lama.
"Sooner or later you have to solve these problems, not by force but by understanding and talk," said the exiled Tibetan spiritual leader
"While great progress has been made to integrate into the world economy, I believe it is equally important to encourage China to enter the mainstream of global democracy."