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5 Ways a US-China Investment Treaty Would Help China


5 Ways a US-China Investment Treaty Would Help China_1
A US-China BIT would bring greater competition to Chinese factories

A US-China BIT would bring greater competition to Chinese factories

In a roundtable co-hosted by the Paulson Institute at the annual US-China Joint Commission on Commerce and Trade meeting on December 17 in Chicago, the one thing that both US and Chinese business leaders consistently called for was a level playing field. What’s the smartest way to achieve that goal? A Bilateral Investment Treaty. Here, according to “BIT by BIT,” a Paulson Institute paper, are five reasons a BIT would be good for China:

  1. Just as China’s World Trade Organization market-access commitments helped accelerate reforms in China, a BIT could serve President Xi Jinping’s reform agenda: by helping reduce domestic economic distortions, increasing market transparency and promoting competition.
  2. A BIT would help China rebalance its economy away from state investment in fixed assets to greater reliance on consumption—another key reform goal.
  3. By exposing more Chinese firms to American companies and their managerial expertise, a BIT would help China move up the value chain into innovative industries with higher wages.
  4. A BIT would help reorient the Chinese economy toward the private sector by increasing the pool of capital available to private companies.
  5. A BIT would mitigate uncertainty created by the shifting political winds on attitudes toward Chinese investment in the United States.

Click here for 5 Ways a US-China Investment Treaty Would Help Americans

Topics: Bilateral Investment Treaty, Investment