CRI听力:Sino-US Bilateral Investment Treaty Tops S&ED Agenda

Chen Fengying is an researcher from China Institutions of Contemporary International Relations.

She explains the sticking points for the talks so far.

"For the U.S., they wish to see the negative list as short as possible. But sectors involving national economy, national security and traditional industries are still on the list. The U.S. is also concerning about the protection of intellectual property rights and policy on state-owned enterprise. As for China, the biggest concern is to protect Chinese investment in the U.S. Now the U.S' national security reviews have restricted Chinese investment. Therefore, China wants the US to allow Chinese companies to get in under a pre-establishment national treatment."

The negotiation entered a substantial phase last year after the two countries agreed to talk on the basis of "pre-establishment national treatment" and the creation of a negative list.

Pre-establishment national treatment means the rights of foreign investors and their investments would be protected as if they were native to the country in which business was being conducted.

The Chinese government wants this protection for Chinese companies setting up shop in the US.

Meanwhile, the US has concerns about China's negative list, which outlines sectors barred from US investment.

As negociations on the treaty first started in 2008, the treaty is expected to make it easier for bilateral investment.

Chen Fengying points out further that it can bring better protection for Chinese companies on American soil.

"It includes an investment protection deal, providing legal protection to companies that want to invest in the U.S. Meanwhile, the treaty can offer better protection for our companies' interests. Currently, the problem is that Chinese investment in the U.S needs to go through a national security review. If the U.S. gives us as negative list, specifying which sector is not open for Chinese investment, it could help our companies to cut cost and save time."

Chen also says that for Chinese consumers, the treaty will help to stimulate consumption and reduce labor costs, which may bring down the prices of imported goods from the U.S.

During the talks, U.S Secretary of Treasury Jacob Lew has already expressed optimism in delivering results.

"President Obama and President Xi have been clear that a strong U.S and China economic relationship is a top priority. We've worked hard to establish a relationship based on frank communication and exchange. This has allowed us to deliver tangible benefits to our people, manage frictions and work together to address global challenges."

China and the U.S. will start a new round of talks on the Bilateral Investment Treaty in Washington starting from the 28th.

The two-way trade between the two countries has exceeded 520 billion U.S. dollars.

The U.S. has bilateral investment treaties with 41 countries.

But an agreement with China would be the largest such treaty by far.