The new United States ambassador to China, Max Baucus, said advancing a bilateral investment treaty between the world’s two largest economies will be his top priority. “While we still have a lot of work to do for concluding the treaty, helping move it forward would be a top priority of mine. I am going to work very hard to make this bilateral investment treaty successful,”Baucus said while addressing members of the American Chamber of Commerce in China.
A member of the Democratic Party, Baucus was appointed to the post by US President Barack Obama in February, succeeding Gary Locke. When he was in the US Senate, Baucus strongly supported permanent normal trade relations with China and China’s subsequent entry into the World Trade Organization.
China and the US started discussing the treaty in 2008, but talks stalled with China’s insistence on a long list of protection for some sectors.
The US is the world’s top recipient of foreign direct investment, followed by China. Analysts believe a bilateral investment pact will help reshape global investment rules. “The Sino-US treaty talks and the introduction of the ‘negative list’ approach in the China (Shanghai) Pilot Free Trade Zone show the Chinese government’s determination to reform the regulations for foreign investment,”Zhan Xiaoning, director of the investment and enterprise division at the United Nations Conference on Trade and Development, said.
“China needs to engage in the building of higher global investment rules through participating in high-standard bilateral, regional and multilateral investment pact talks,”Zhan said. Baucus noted that China is “again at a critical junction”in its development and new challenges have emerged.
“We will use the dialogue to advocate aggressively the things that matter most to the business community, that is, removing investment restrictions, improving (intellectual property rights) protection, increasing transparency, especially in regulatory proceedings, and creating a level playing field for all companies in China,”the ambassador said.
