China, US agree to begin talks on investment treaty
Source: Agencies |
July 13, 2013, Saturday
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Print Edition
Print Edition
CHINA and the United States have agreed to restart stalled negotiations on an investment treaty, with Beijing dropping previous efforts to protect certain sectors of its economy.
The agreement to resume negotiations was welcomed by the US business community as a major advance during the annual Strategic and Economic Dialogue talks in Washington.
US Treasury Secretary Jack Lew hailed the investment treaty commitment as a sign of positive change in Beijing as China retools its economic growth model away from heavy investment and exports toward growth driven by consumption.
"China announced its intention to negotiate a high standard bilateral investment treaty with us that will include all stages of investment and all sectors - a significant breakthrough, and the first time China has agreed to do so with another country," he said as the two-day talks concluded on Thursday.
China and the US began negotiations on a pact to govern bilateral investment in 2008 under then-US President George W. Bush, but discussions were put on hold after President Barack Obama took office the following year.
Previously, China had agreed to talks only if certain Chinese industries, especially in its service sector, were exempt.
But it agreed to drop blanket restrictions for the current talks, a US Treasury official said.
The official, briefing reporters at the US-China economic talks, said the move was an encouraging sign that the world's second-largest economy was willing to open up more sectors to foreign competition.
Chinese Commerce Minister Gao Hucheng told reporters that China and the US shared "a common purpose, which is to try to find ways to reduce and mitigate differences and barriers that both sides place in our trade and investment relations."
Explaining China's motives for reopening the investment talks, Chinese Vice Finance Minister Zhu Guangyao said China had about US$20 billion of direct investment in the US and US$1.2 trillion in US treasury bills.
"With such an extensive investment relationship, it is necessary for the two sides to have an institutional environment for the protection of these investments," he told reporters.
In addition, Zhu said, "Business leaders from China and the United States have a strong desire to invest in the market of the other. They both want an open and more transparent market."
No officials from either side specified when the negotiations would begin.
China is increasingly looking to invest in America.
Chinese Vice Premier Wang Yang said the US pledged to treat Chinese investment equally and fairly and welcome investment from state-owned enterprises and sovereign wealth funds.
The US also agreed that the Treasury-led committee that screens foreign investment proposals would consider only national security, not other factors, Wang said.
The agreement to resume negotiations was welcomed by the US business community as a major advance during the annual Strategic and Economic Dialogue talks in Washington.
US Treasury Secretary Jack Lew hailed the investment treaty commitment as a sign of positive change in Beijing as China retools its economic growth model away from heavy investment and exports toward growth driven by consumption.
"China announced its intention to negotiate a high standard bilateral investment treaty with us that will include all stages of investment and all sectors - a significant breakthrough, and the first time China has agreed to do so with another country," he said as the two-day talks concluded on Thursday.
China and the US began negotiations on a pact to govern bilateral investment in 2008 under then-US President George W. Bush, but discussions were put on hold after President Barack Obama took office the following year.
Previously, China had agreed to talks only if certain Chinese industries, especially in its service sector, were exempt.
But it agreed to drop blanket restrictions for the current talks, a US Treasury official said.
The official, briefing reporters at the US-China economic talks, said the move was an encouraging sign that the world's second-largest economy was willing to open up more sectors to foreign competition.
Chinese Commerce Minister Gao Hucheng told reporters that China and the US shared "a common purpose, which is to try to find ways to reduce and mitigate differences and barriers that both sides place in our trade and investment relations."
Explaining China's motives for reopening the investment talks, Chinese Vice Finance Minister Zhu Guangyao said China had about US$20 billion of direct investment in the US and US$1.2 trillion in US treasury bills.
"With such an extensive investment relationship, it is necessary for the two sides to have an institutional environment for the protection of these investments," he told reporters.
In addition, Zhu said, "Business leaders from China and the United States have a strong desire to invest in the market of the other. They both want an open and more transparent market."
No officials from either side specified when the negotiations would begin.
China is increasingly looking to invest in America.
Chinese Vice Premier Wang Yang said the US pledged to treat Chinese investment equally and fairly and welcome investment from state-owned enterprises and sovereign wealth funds.
The US also agreed that the Treasury-led committee that screens foreign investment proposals would consider only national security, not other factors, Wang said.
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