China and the United States have agreed to begin negotiations on an investment treaty which could greatly expand opportunities for American companies in the fast-growing Chinese economy.

The announcement came yesterday as the two nations ended two days of high-level economic talks in Washington.

Visiting Chinese Vice Premier Wang Qishan and US Treasury Secretary Henry Paulson co-chaired the meeting as special representatives of the state leaders of the two countries.

"This is a successful meeting," Wang said.

The two countries also announced other agreements in such areas as boosting energy security, lowering global pollution and expanding food monitoring.

China's Commerce Minister Chen Deming, who also joined the talks, said yesterday that the Chinese side understands US concerns about the quality and safety of imported Chinese goods, but warns against abusing and manipulating the issue as a pretext for trade protectionism.

China is willing to make more overseas investments, including expanding investments in the US, which will help China create a better international balance of payments and enhance global economic stability, he added.

Chen noted that a number of private Chinese businesses have made investments in the US and contributed to the American economy.

Expressing hope that the US government would relax high-tech export restrictions, settle trade disputes through negotiation and push forward multilateral trade talks jointly with China, Chen urged the US to recognize China's market economy status.

(Shanghai Daily June 19, 2008)