China agrees to resume US investment treaty talks

The proposed investment treaty is likely to make it easier for US companies to invest in China.

Related Stories

China has agreed to resume talks on a bilateral investment treaty with the US which could open up new opportunities for businesses in both countries.

Chinese officials have agreed to include all sectors in the treaty, the first time Beijing has done so.

The US has been pushing for such a deal as American firms have been keen to get more access to the Chinese market amid growing consumer demand there.

A deal could see key sectors in China open up to investment by US firms.

"A high standard US-China bilateral investment treaty is a priority for the United States and would work to level the playing field for American workers and businesses by opening markets for fair competition,'' Treasury Secretary Jacob Lew said in a statement.

"The commitment made today stands to be a significant breakthrough and marks the first time China has agreed to negotiate a Bilateral Investment Treaty, to include all sectors and stages of investment, with another country," he added.

'Equally and fairly'

The decision to restart the talks was reached at high-level negotiations between the two countries held in the US.

China's Vice Premier Wang Yang said that US had agreed to accept investment by Chinese state-owned enterprises and sovereign wealth funds.

US and Chinese official at bi-lateral talks held in Washington The world's two largest economies have been looking to boost bi-lateral ties

"The United States pledges to treat Chinese investment equally and fairly," Mr Wang was quoted as saying by the Associated Press news agency.

Boosted by their success back home, Chinese firms have been keen to boost their presence in the US - the world's largest economy. However, some of the moves by Chinese companies into the US market have faced close scrutiny.

Earlier this week, members of the Senate Agriculture Committee in the US expressed concerns over the China's Shuanghui International deal to buy Virginia-based Smithfield Foods, the biggest US pork firm.

Last year, a US Congressional panel warned Chinese telecom firms Huawei and ZTE pose a security threat to the US, adding that the two firms should be barred from any US mergers and acquisitions.

The two firms have defended themselves and denied those claims.

In September, President Barack Obama blocked a move by Chinese company, Ralls Corp, to build wind turbines in the US state of Oregon, citing national security concerns.

It was the first foreign investment to be blocked in the US for 22 years.

More on This Story

Related Stories

More Business stories

RSS

Features & Analysis

  • French luxury Tea House, Mariage Freres display of tea pots Tea for tu

    France falls back in love with tea - but don't expect a British cuppa


  • Woman in swimming pool Green stuff

    The element that makes a familiar smell when mixed with urine


  • People take part in an egg-cracking contest in the village of Mokrin, 120km (75 miles) north of Belgrade, Serbia on 20 April 2014In pictures

    Images from around the world as Christians mark Easter Sunday


  • Female model's bottom in leopard skin trousers as she walks up the catwalkBum deal

    Why budget buttock ops can be bad for your health


From BBC Capital

Programmes

  • An aerial shot shows the Olympic Stadium, which is closed for repair works on its roof, in Rio de Janeiro March 28, 2014.Extra Time Watch

    Will Rio be ready in time to host the Olympics in 2016? The IOC president gives his verdict

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.