China & US Investment Treaty: All is Not Well!

Published By : 08 Jun 2015 | Published By : QYRESEARCH

China is expected to start talks with the United States to exchange demands for an investment treaty. The treaty between the two largest economies of the world will help to list down the sectors that each side considers to be closed for the investors from the other side. Compared to the U.S. government, the Chinese government has put more restrictions on foreign investment. The U.S. investors hope that the treaty will provide them increased access to some of the tightly controlled industries in China such as healthcare and financial industries. However, they are also worried that stringent Chinese regulations might jeopardize the future of the talks. 

 

Sources close to the matter have revealed that Beijing is expected to come up with a long list of sensitive sectors to restrict foreign access. Beijing has complained that the U.S. has put restrictions on Chinese investment in infrastructure and technology and has singled out the Chinese firms in the U.S. national security reviews. China is also drafting stringent laws on national security and non-governmental organizations which is perceived by the foreign business community as overreaching and aggressive.

 

The American Chamber of Commerce in China has complained to the Chinese government about the security law and has raised questions about China’s commitment towards opening its markets for foreign investment. Allegations from Washington regarding recent cyber-attacks by Chinese hackers on American companies and the U.S. government agencies has further soured the relations. All of this is expected to highly impact the strategic and economic talks between the two nations in late June. 

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