WASHINGTON: Negotiations to bring about a bilateral investment treaty between China and the US could be concluded within two years, but ratification would then be a tough process, China’s vice finance minister said.
Zhu Guangyao said that good progress had been made since the two countries agreed in July to intensify talks on the treaty and there had already been 12 rounds of talks for technical clarification of the text.
“If (we give an) optimum estimate, within the next two years we can conclude negotiations,” Zhu told a small group of reporters on the sidelines of the International Monetary Fund (IMF)/World Bank meetings in Washington.
“Now is a very good beginning … however, the next stage is still very hard for negotiation.”
A treaty would also need to be approved by the legislatures in both countries, a process that would also be “very tough,” Zhu said.
He said the two sides had agreed to make an exchange early next year of “negative lists” of sensitive sectors that are off-limits to investment.
Washington’s aim is to loosen Beijing’s restrictions in key sectors from service industries to agriculture, and to ensure that foreign companies receive treatment equal to Chinese private and state-owned enterprises.
China heavily restricts dozens of industries and US firms have long complained they are forced to meet unfair burdens such as ownership caps and are pressured to transfer technology in exchange for market access.
China for its part wants fewer restrictions placed on potential investments in the US for national security reasons. — Reuters