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5 White Paper on the Business Environment in China
American business interests in US-China BIT negotiations.7 Works Cited
Key points included the following:
US negotiations are spearheaded by the O ce of the US 1 Stephanie Henry. “Bilateral Investment Treaties: What ey
Are and Why ey Matter.” China Business Review, US-China
Trade Representative and the Department of the State, both Business Council. September 12, 2014. http://www.china-
of which focus on six core areas: briefing.com/news/2014/09/12/bilateral-investment-treaties-
matter.html
• National treatment for foreign investors;
•Prompt, adequate, and effective expropriation processes; 2 Vicki Needham. “Business leaders call for completion of China
•Transferability of assets between both countries; investment treaty.” e Hill. October 15, 2014. http://thehill.
•Performance requirements; com/policy/ nance/220856-business-leaders-call-for
•Investor choice in hiring practices; and
•Investor state dispute rights, due process, and mechanisms. 3 Richard Silk. “Investment Treaty with China a Top Priority, US
Ambassador Says.” Wall Street Journal. June 25, 2014. http://
e US-China BIT is essentially a portion of a US model online.wsj.com/articles/investment-treaty-with-china-a-top-
Free Trade Agreement, as all such US FTAs include a chapter priority-u-s-ambassador-says-1403682377
on investment. e BIT is made of two components; the text,
or main body of the treaty, which includes agreements and 4 Chen Weihua. “Investment treaty key for US, China.” China
mandates applicable to both US and China, as well as the ap- Daily USA. November 20, 2014. http://usa.chinadaily.com.cn/
pendices, including the negative lists, which will contain each us/2014-11/20/content_18950741.htm
country’s respective restrictions on foreign investment. Being
a treaty, the BIT must be approved by Congress, and hence 5 “China’s Zhu: Asia Paci c trade deal would be incomplete
must contain su cient compromises on China’s part in order without Beijing.” Reuters. October 8, 2014. http://
for the nal BIT to pass the bill.7 www.reuters.com/article/2014/10/08/us-china-imf-zhu-
idUSKCN0HX2CY20141008
At the 2014 Strategic Economic Dialogue, US and Chi-
nese negotiators a rmed their commitment to intensifying 6 “TPP is incomplete without China: China’s vice nance minister.”
Bilateral Investment Treaty Negotiations, setting a goal to China Daily. October 9, 2014. http://www.chinadaily.com.cn/
“reach agreement on core issues and major articles of the text china/2014-10/09/content_18711231.htm
by the end of 2014” and “initiate the ‘negative list’ negotia-
tion in early 2015 based on each other’s ‘negative list’ o ers.7 7 Daniel H. Rosen. “Avoiding the Blind Alley: China’s Economic
Overhaul and its Economic Implications.” An Asia Society
e broad slate of domestic reforms in the Decisions Policy Report produced in collaboration with Rhodium Group.
indicates that China knows these reforms are in its own October 31, 2014. http://asiasociety.org/ les/pdf/Avoidingth-
national interest and must be achieved, declares Mr. Rosen in eBlindAlley_FullReport.pdf
his Asia Policy report. It makes sense from China’s perspective
to negotiate concessions from abroad for reforms that must
be taken in any case. However, it is important to recognize
that China is pursuing market-oriented economic reforms for
the simple, self-interested reason that it is simply a wise thing
to do.7
70
American business interests in US-China BIT negotiations.7 Works Cited
Key points included the following:
US negotiations are spearheaded by the O ce of the US 1 Stephanie Henry. “Bilateral Investment Treaties: What ey
Are and Why ey Matter.” China Business Review, US-China
Trade Representative and the Department of the State, both Business Council. September 12, 2014. http://www.china-
of which focus on six core areas: briefing.com/news/2014/09/12/bilateral-investment-treaties-
matter.html
• National treatment for foreign investors;
•Prompt, adequate, and effective expropriation processes; 2 Vicki Needham. “Business leaders call for completion of China
•Transferability of assets between both countries; investment treaty.” e Hill. October 15, 2014. http://thehill.
•Performance requirements; com/policy/ nance/220856-business-leaders-call-for
•Investor choice in hiring practices; and
•Investor state dispute rights, due process, and mechanisms. 3 Richard Silk. “Investment Treaty with China a Top Priority, US
Ambassador Says.” Wall Street Journal. June 25, 2014. http://
e US-China BIT is essentially a portion of a US model online.wsj.com/articles/investment-treaty-with-china-a-top-
Free Trade Agreement, as all such US FTAs include a chapter priority-u-s-ambassador-says-1403682377
on investment. e BIT is made of two components; the text,
or main body of the treaty, which includes agreements and 4 Chen Weihua. “Investment treaty key for US, China.” China
mandates applicable to both US and China, as well as the ap- Daily USA. November 20, 2014. http://usa.chinadaily.com.cn/
pendices, including the negative lists, which will contain each us/2014-11/20/content_18950741.htm
country’s respective restrictions on foreign investment. Being
a treaty, the BIT must be approved by Congress, and hence 5 “China’s Zhu: Asia Paci c trade deal would be incomplete
must contain su cient compromises on China’s part in order without Beijing.” Reuters. October 8, 2014. http://
for the nal BIT to pass the bill.7 www.reuters.com/article/2014/10/08/us-china-imf-zhu-
idUSKCN0HX2CY20141008
At the 2014 Strategic Economic Dialogue, US and Chi-
nese negotiators a rmed their commitment to intensifying 6 “TPP is incomplete without China: China’s vice nance minister.”
Bilateral Investment Treaty Negotiations, setting a goal to China Daily. October 9, 2014. http://www.chinadaily.com.cn/
“reach agreement on core issues and major articles of the text china/2014-10/09/content_18711231.htm
by the end of 2014” and “initiate the ‘negative list’ negotia-
tion in early 2015 based on each other’s ‘negative list’ o ers.7 7 Daniel H. Rosen. “Avoiding the Blind Alley: China’s Economic
Overhaul and its Economic Implications.” An Asia Society
e broad slate of domestic reforms in the Decisions Policy Report produced in collaboration with Rhodium Group.
indicates that China knows these reforms are in its own October 31, 2014. http://asiasociety.org/ les/pdf/Avoidingth-
national interest and must be achieved, declares Mr. Rosen in eBlindAlley_FullReport.pdf
his Asia Policy report. It makes sense from China’s perspective
to negotiate concessions from abroad for reforms that must
be taken in any case. However, it is important to recognize
that China is pursuing market-oriented economic reforms for
the simple, self-interested reason that it is simply a wise thing
to do.7
70
