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South China Business Journal
HIGHLIGHT Washington in Action
F8DtoiharlmUoe.gSru.-SeCenhiionra OCEffOiciaanlds’
U.S. Chamber President and
CEO Tom Donohue and former referenced China’s economy as being on The Chinese delegation advocated
Chinese Vice Premier Zeng Peiyan co- an “L curve,” a now familiar reference aggressively for flexibility and a lower
chaired the Dialogue, which was attended to a People’s Daily interview with an standard in the ongoing BIT negotiations-
by leading global CEOs of American and “authoritative person” on the Chinese and there were side-bar indications that
Chinese businesses and former cabinet- economy early this month. (It is widely the Chinese side is pursuing the BIT
level officials on both sides. believed that the “authoritative person” with considerably less vigor at this point
is chief of the general office of the Central (because China is not willing to meet
The following senior U.S. and Chinese Financial and Economic Leading Group the standard at this time and because
officials addressed Dialogue participants and economic advisor to President of doubts about the commitment of the
over the two-day event: Xi Jinping, Liu He.) The delegation, Obama Administration to close a deal
• Senate Majority Leader Mitch however, emphasized the tools at China’s in the context of the election and a TPP
McConnell; disposal to forestall a hard landing: large push). “We should work together to make
• Chinese Ambassador to the United States forex reserves, high savings, and most of sure both governments do not aim so
Cui Tiankai; China’s debt being owned domestically. high,” noted one influential delegate. “We
• White House Chief of Staff Denis Participants also referenced China’s need to find a middle ground where both
McDonough; growth in consumption and services as sides are satisfied,” commented another.
• Chairman, Council of Economic Advisers percentages of GDP as well as continuing
Jason Furman; opportunities to invest in infrastructure. • On the U.S. Investment
• Federal Reserve Governor Jerome China’s infrastructure stands at only 1/3 Environment: Many Chinese delegates
Powell; of that of developed economies on a per recycled the usual talking points on the
• Under Secretary of State Cathy Novelli; capita basis. perceived barriers, including longstanding
• Under Secretary of Commerce Stefan concerns regarding discriminatory
Selig; and • On the Direction of U.S. Economic treatment under CFIUS, to Chinese
• Assistant Secretary of Treasury Marisa Policy and U.S. Domestic Politics: investment in the United States. One
Lago. Chinese delegates were particularly influential Chinese delegate called
interested in the timing of U.S. interest vociferously for the U.S. to put forward a
OBSERVATIONS FROM THE CHINESE rate hikes. They were also keen to “negative list” under CFIUS. “If you don’t
DELEGATION understand if America’s core ideology want Chinese to invest in a particular
and philosophy (i.e. free trade and industry then state it plainly,” the delegate
• On the Chinese Economy: open markets) is changing. There was said. “This would save Chinese investors
The Chinese delegation was reasonably significant discussion about the approach time and money.”
candid about the economy, noting of the next administration. Related, there
challenges tied to debt, overcapacity was concern that what President Obama • On ICT Policy Challenges: The
and continuing downward pressure on says in September at the G20 in Hangzhou seeming consensus view across the
growth-notwithstanding employment of may not represent the policy direction of Chinese delegation was that for the
recent fiscal measures that have stabilized the future U.S. government Chinese government and consumers, if
economic growth. An influential core technology is not fully developed
participant from the Chinese delegation • On the Bilateral Investment Treaty domestically, it won’t be able to solve its
(BIT) Negotiations: information security issue. One delegate
8
HIGHLIGHT Washington in Action
F8DtoiharlmUoe.gSru.-SeCenhiionra OCEffOiciaanlds’
U.S. Chamber President and
CEO Tom Donohue and former referenced China’s economy as being on The Chinese delegation advocated
Chinese Vice Premier Zeng Peiyan co- an “L curve,” a now familiar reference aggressively for flexibility and a lower
chaired the Dialogue, which was attended to a People’s Daily interview with an standard in the ongoing BIT negotiations-
by leading global CEOs of American and “authoritative person” on the Chinese and there were side-bar indications that
Chinese businesses and former cabinet- economy early this month. (It is widely the Chinese side is pursuing the BIT
level officials on both sides. believed that the “authoritative person” with considerably less vigor at this point
is chief of the general office of the Central (because China is not willing to meet
The following senior U.S. and Chinese Financial and Economic Leading Group the standard at this time and because
officials addressed Dialogue participants and economic advisor to President of doubts about the commitment of the
over the two-day event: Xi Jinping, Liu He.) The delegation, Obama Administration to close a deal
• Senate Majority Leader Mitch however, emphasized the tools at China’s in the context of the election and a TPP
McConnell; disposal to forestall a hard landing: large push). “We should work together to make
• Chinese Ambassador to the United States forex reserves, high savings, and most of sure both governments do not aim so
Cui Tiankai; China’s debt being owned domestically. high,” noted one influential delegate. “We
• White House Chief of Staff Denis Participants also referenced China’s need to find a middle ground where both
McDonough; growth in consumption and services as sides are satisfied,” commented another.
• Chairman, Council of Economic Advisers percentages of GDP as well as continuing
Jason Furman; opportunities to invest in infrastructure. • On the U.S. Investment
• Federal Reserve Governor Jerome China’s infrastructure stands at only 1/3 Environment: Many Chinese delegates
Powell; of that of developed economies on a per recycled the usual talking points on the
• Under Secretary of State Cathy Novelli; capita basis. perceived barriers, including longstanding
• Under Secretary of Commerce Stefan concerns regarding discriminatory
Selig; and • On the Direction of U.S. Economic treatment under CFIUS, to Chinese
• Assistant Secretary of Treasury Marisa Policy and U.S. Domestic Politics: investment in the United States. One
Lago. Chinese delegates were particularly influential Chinese delegate called
interested in the timing of U.S. interest vociferously for the U.S. to put forward a
OBSERVATIONS FROM THE CHINESE rate hikes. They were also keen to “negative list” under CFIUS. “If you don’t
DELEGATION understand if America’s core ideology want Chinese to invest in a particular
and philosophy (i.e. free trade and industry then state it plainly,” the delegate
• On the Chinese Economy: open markets) is changing. There was said. “This would save Chinese investors
The Chinese delegation was reasonably significant discussion about the approach time and money.”
candid about the economy, noting of the next administration. Related, there
challenges tied to debt, overcapacity was concern that what President Obama • On ICT Policy Challenges: The
and continuing downward pressure on says in September at the G20 in Hangzhou seeming consensus view across the
growth-notwithstanding employment of may not represent the policy direction of Chinese delegation was that for the
recent fiscal measures that have stabilized the future U.S. government Chinese government and consumers, if
economic growth. An influential core technology is not fully developed
participant from the Chinese delegation • On the Bilateral Investment Treaty domestically, it won’t be able to solve its
(BIT) Negotiations: information security issue. One delegate
8
