US companies urge China to speed up talks over market access
Discussions on the Bilateral Investment Treaty, especially over which sectors will be closed off to outsiders, must happen faster, says lobby group AmCham China
A delay by China over improving market access for foreign companies could erode support in the US business community for a key investment deal, a lobby group has said.
The warning comes as Beijing compiles its negative list, which lays out which sectors will be closed to American investors if the Bilateral Investment Treaty (BIT) is signed.
In its present form, the list is longer than the US business community expected, and a final version may not come any time soon.
“Beijing is still committed to do this, but I think it will take a bit of time to do internal work for the government to be able to get approval to offer more market liberalisation in the negative list,” said Timothy Stratford, a former US assistant trade official who is representing the American business community.
I’ve heard from well-informed people who said it could take weeks or month
Beijing was scheduled to hand over the negative list at the end of March or early this month. But Stratford anticipated a further wait. “I’ve heard from well-informed people who said it could take weeks or months.”
The treaty would attract more US investment and advanced technology to China, which would help its industry evolve. The pact would also remove obstacles preventing Chinese companies from pouring more funds into the US and creating jobs there.
He made the comments on Friday on the sidelines of a business forum in Beijing that was organised by the American Chamber of Commerce in China.
In a white paper, the group called for a “short and narrow” negative list on market access by both governments and urged Beijing to prioritise opening markets and pressing ahead with reforms.
“The recent lacklustre pace and substance of reform and opening unfortunately create doubt amongst our members about China’s commitment to the principles that would be included in the BIT,” the paper said.
High time for a global investment agreement
“Furthermore, numerous companies have reportedly been told by Chinese government officials that any further market opening will be held off until the completion of the BIT.”
If China took too long with the draft, or no substantial changes were made, the US business community would start to lose interest and be unwilling to support ratification of the deal by senators, Stratford said.
However, China’s Ministry of Commerce, which is leading the negotiations, last month pointed to progress, saying the countries’ leaders had indicated support for speeding up the talks.
AmCham China chairman James Zimmerman said: “Serious and systemic challenges remain, particularly around the key issues of market access and barriers to investment, opaque rules and regulatory practices, and the overall development of and respect for the rule of law.”
US firms were eyeing investment opportunities in China’s “One Belt, One Road” initiative but were concerned about the lack of specific policies and unfair competition, the report said.
