China and US should conclude BIT talks before election
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A worker looks closely as containers are unloaded in Qingdao Port, Shandong province. China is eager to create a fair investment environment for foreign businesses. [Photo/China Daily] |
Talks over the China-U.S. bilateral investment treaty (BIT) should be completed before November's U.S. presidential election to prevent potential political intervention, former commerce minister Chen Deming said on Wednesday.
His comments came after the U.S. Republican presidential frontrunner Donald Trump pledged to impose tariffs on Chinese products to "level the playing field", even though this would be contrary to the rules of the World Trade Organization.
Speaking at the annual Boao Forum for Asia in Boao, Hainan province, Chen said the BIT talks are nearing completion with most key issues resolved. Both sides have agreed in principle to take disputes between the host countries and investors to third-party arbitration at the World Bank and are now exploring ways of further shrinking the so-called negative lists before moving on to talks on market access.
A total of 24 rounds of talks have been held since negotiations started in 2008 as both countries sought to increase mutual investment. The treaty is expected to boost Sino-US ties after China became the biggest trading partner of the United States last year, with trade volume reaching nearly US$560 billion.
“Sino-US trade has grown large in volume, but bilateral investment is still trudging a muddy path,” said Song Hailiang, president of Shanghai Zhenhua Heavy Industry Co, a heavy-duty equipment maker.
The treaty is vital for free and easy investment, a key aspect of economic vitality, Chen said. The BIT will help Chinese companies invest overseas and fit better in the global value chain.
Eager to create a fair investment environment for foreign businesses, China has urged the U.S. to exchange views on the negative lists to conclude the talks.
A "negative list" specifies any bans or limits on foreign investment.
Businesses not on such a list are presumed to be unrestricted. This system has been adopted in China's four pilot free trade zones in Shanghai, Tianjin, Guangdong and Fujian, which opened in the past two years.
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