The U.S. business community Tuesday called on American and Chinese leaders to move forward with negotiations on a bilateral investment treaty (BIT) between the two countries and strengthening bilateral business ties.
In a letter sent to U.S. President Barack Obama and Chinese President Xi Jinping, which was signed by 94 American chief executive officers(CEOs), U.S. business leaders expressed their firm support for "the rapid conclusion of a meaningful and high-standard BIT" between the two countries, and asked the two presidents to underscore the importance of the BIT during Xi's upcoming state visit to the United States.
"As we look at the range of issues on the bilateral agenda, a high-standard BIT -- with clear provisions providing equal treatment to each country's investors and a short list of exceptions -- is one of the key items that could make an immediate and tangible impact on both of our economies," the business executives said in the letter jointly issued by the U.S.-China Business Council (USCBC) and the Paulson Institute.
"We believe that increased cross-border investment flows will create economic growth and jobs, lending new momentum to the commercial relationship and fortifying the economic foundation already built," they said, hoping that "significant progress can be made on this historic agreement during President Xi's visit" next week.
"America's business leaders have sent a strong, unified message to President Xi and President Obama supporting a high-standard U.S.-China Bilateral Investment Treaty," USCBC President John Frisbie said in a statement.
"The BIT should be the top commercial focus during President Xi's visit." The investment treaty talks began in 2008 as China and the United States sought to increase mutual investment, which only accounted for a tiny share of their respective overseas investment.
But it was not until the China-U.S. Strategic and Economic Dialogue (S&ED) in 2013 that the talks entered a substantial phase, when the two countries agreed to conduct negotiations on the basis of pre-establishment national treatment with a negative list approach, which means all sectors are open to foreign investment except those specifically listed.
China's Vice Finance Minister Zhu Guangyao said at the seventh round of the S&ED in June this year that the two countries have committed to exchanging improved negative list offers in early September in the hope that Xi and Obama could confirm "major progress" made in BIT talks when they meet later in September.
Then the two leaders could give further clear instructions to both negotiating teams for concluding the talks, Zhu said.
"Our objective is to conclude the China-U.S. BIT negotiations under the Obama administration," Zhu said.
The investment treaty is expected to continue to expand two-way trade and investment and cement the foundation of China-U.S. economic ties.
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