中美之间的投资增加

High on the agenda at the China-US Strategic and Economic Development forum is the Bilateral Investment Treaty, or BIT. Both countries have yet to complete the terms of the treaty, but an agreement would mean more openness and investment for the world’s two largest economies.

The U.S. and China are working on hammering out the details of a bilateral investment treaty. If an agreement is reached, it would mean that China would change the rules for U.S. companies operating in the country.

As it stands, China maintains ownership restrictions on U.S. and foreign companies operating in over 100 sectors including energy, agriculture and manufacturing. Such ownership barriers have prevented U.S. companies from expanding and reaching more customers in China.

Experts say finalizing the bilateral investment treaty is high on President Obama’s Chinese to-do list.

"Presently, U.S. direct investment in China constitutes only about 3% of all investment in China. Similarly, Chinese investment in the United States constitutes only 1% of all foreign investment in the United States. So, there’s a huge opportunity for growth on both sides." Daniel M. Price, Managing Director of Rock Creek Global Advisor said.

Currently, the U.S. has bilateral investment treaties with 41 countries including Egypt, Turkey and Ukraine. But an agreement with China would by far be the largest.

"The importance of the BIT, it sets basic economic conditions, basic regulatory conditions for the two sides. It promotes transparency, it guarantees nondiscrimination and significantly it promotes competitive opportunity." Daniel M. Price said.

It’s not just the U.S. that would benefit from such a treaty. China has a lot to gain too.

Stephen Leeb is a financial author and President of Leeb Group. He says a bilateral investment treaty could be the golden ticket China needs for making its Yuan a reserve currency.

"You add these 3 things together, size of the economy, military, trade and you have the case for what we would call a reserve currency. China’s currency, you know, these are three pre-conditions for a country to have a reserve currency. Now if all of a sudden China opens up their road to investment and makes it easier to invest in their country, that disadvantage, the disadvantage of not being able to invest in China, will disappear vis a vis the U.S. Not completely disappear, but it will lessen. So that the case for the Yuan as a reserve currency will strengthen." Stephen Leeb, President of Leeb Group said.

The U.S.-China Strategic and Economic Development forum has traditionally been a catalyst of driving negotiations forward. The bilateral investment treaty requires two-thirds of majority support in the Senate and experts believe the treaty will receive the political backing it needs because the benefits of increased economic cooperation between the two superpowers is vital for the success of both the U.S. and China.