Seven Years Of Negotiations Between China And The US Have Finally Reached A Breakthrough, Concluding Bilateral Investment Agreements.

　　 China and the US have made major breakthroughs in concluding bilateral investment agreements

　　 After seven years of negotiations, the development of Sino US bilateral relations is more solid.

Recently, the seventh round. Sino US strategic and economic dialogue It's held in Washington, D.C. The two sides have in-depth discussions on promoting the building of new Sino US major power relations, deepening bilateral pragmatic cooperation, strengthening Sino US cooperation in the Asia Pacific region, coping with regional hot spots and global challenges, and building control differences. We have achieved more than 120 achievements.

The most surprising thing is that China and the United States promise to exchange new negative lists in the talks held around the bilateral investment agreement (BIT). This means that the two sides have made a big step towards the conclusion of BIT relations.

US Treasury Secretary Jacob Lu said at a closing news conference 24, China and the United States have found the rhythm of promoting bilateral relations.

Seven years of negotiations for BIT breakthrough

After several rounds of negotiations, the two countries agreed to start the most controversial stage: market access. "The two sides have confirmed that consultations on the high standard BIT is a priority task for the economic relations between the two countries, and they promise to intensify consultations and exchange the improved negative list in early September." Jack Lou, US Treasury Secretary, said.

Bloomberg economist Chen Shiyuan told the Shanghai Daily reporter, BIT It can eliminate investment barriers and better protect their investment in the other side. TPP and TIIP are multilateral economic cooperation agreements, which can promote economic cooperation among countries in the region. For China, reaching BIT with the United States should help to join the TPP regional economic cooperation agreement in the future.

He believes that foreign investment in the financial services sector will help improve China's overall economic quality and capital allocation efficiency, and contribute to sustained and sustainable economic development. However, there is still a big gap between China's financial and other service industries and developed countries. The government is worried that too fast opening will have a great negative impact on domestic enterprises and the economy. China will tend to open up foreign investment in the service sector step by step. The Sino US dialogue provides a good opportunity for the two sides to narrow their differences and seek common ground, so as to find a better balance and achieve a win-win situation.

In this dialogue, China and the United States promise to further promote economic restructuring and sustainable and balanced development. The US side is concerned about the impact of monetary policy on the international financial system, and promises to increase investment, raise savings rate, reduce deficit, reform tax system, and strive to achieve medium-term fiscal sustainability.

Manisha Singh, former Secretary of state of the State Council, wrote in Forbes magazine, after 1979. Sino US trade China's economy has grown enormously on the global basis. The US policymakers have to admit that China is also an important part of the US economic equation. BIT can provide us investors with a new set of rules to make it better enter China's potential market and provide remedies for them to suffer injustice. In view of the global economy, geopolitical situation and the interests of the United States, the United States needs a thoughtful strategic cooperative attitude towards China. The high standard and detailed consultative BIT provides opportunities for cooperation.

In the view of Mei Xinyu, a researcher from the Ministry of Commerce, the main impact of BIT should be in the field of direct investment, including US capital investment in China and Chinese investment in the US, as well as a template for investment agreements between China and other countries and regions. It is estimated that bilateral investment agreements will play a role in promoting US capital to China, especially high-level industries. But the biggest boost should be China's investment in the US. Once the agreement is reached, it will certainly help speed up investment in the US by increasing the protection of Chinese capital and reducing uncertainty.

Mei Xinyu predicts that education, news media, cultural film and television, finance, strategic manufacturing, surveying and mapping services, and port railways must be prohibited or subject to examination and restriction on the negative list. The openness of manufacturing and extractive industries will be significantly improved. {page_break}

　　 RMB (6.2081, -0.0013, -0.02%) is added to SDR.

Good trade relations are inseparable from the establishment of multilateral frameworks. In the dialogue, the two sides promised to cooperate closely under the multilateral framework such as G20 and APEC. The US side actively supports the Chinese side as the chairman of the G20 in 2016, and promises to implement the IMF share and executive board reform plan as soon as possible, and reaffirms that the share allocation should continue to shift to the dynamic emerging markets and developing countries, so as to better reflect the relative weight of IMF member countries in the world economy.

The two sides discussed in depth about the RMB's accession to the SDR, promised to respect the procedures and processes of IMF in the upcoming SDR review, and will continue to strengthen communication on the issue of RMB's accession to SDR.

Chen Shiyuan believes that there are basically two conditions for the RMB to enter the SDR: first, it is widely used internationally and second is free to use internationally. The renminbi has basically met the first condition, but the second conditions are controversial. The G-7 has indicated that welcoming the renminbi's accession to the SDR indicates that it has reached a consensus on this issue, or has jointly exercised the same rights. China's capital account is not fully open, which is a negative factor. In addition, countries will consider whether SDR will be beneficial to the renminbi. Overall, the prospect of RMB joining the SDR is cautiously optimistic.

Michael Spencer, the Nobel Laureate in economics, recently wrote that China signed a swap agreement with more than 30 foreign central banks, using its foreign exchange reserves to help neighboring countries and other countries resist international capital flows. This is in line with the authorities' promotion of RMB internationalization. The renminbi is rapidly expanding its role in trade settlement.

In addition, in this dialogue, the two sides agreed to strengthen exchanges and cooperation in such fields as anti-terrorism, non-proliferation, law enforcement and anti-corruption, aerospace, science and technology, customs, health, agriculture, forestry, transportation, and local areas, so as to bring more tangible benefits to the two peoples. The two sides agreed to continue to implement the joint statement on Climate Change released in November last year, together with other countries to promote positive results of the United Nations Conference on climate change in Paris, agree to carry out more pragmatic cooperation in the field of energy and environmental protection, and actively explore nuclear cooperation in third countries.

Chen Shiyuan believes that China and the United States are the two largest economies in the world and are closely related to each other. Sino US relations can be regarded as the most important bilateral relations in the current international economy. After the financial crisis in 2008, there was a fundamental change in the international economy. New international economic order Is evolving. In this context, the Sino US strategic dialogue is particularly important and will have an important impact on bilateral relations and even the international economy.

The New York Times pointed out that the talks between China and the United States were considered to be the basis for the announcement of a consensus between President Xi Jinping and the president of the United States in September, when he met with President Obama.

Vice Premier Wang Yang, vice premier of the State Council, regarded the success of the current economic dialogue as a "ballast stone" for the sustained and healthy development of Sino US relations. The "thruster" is more powerful, and it has made important preparations for president Xi Jinping's state visit to the United States on the economic agenda in September.

The two sides believe that the exchange of negative lists in the nineteenth round of negotiations is an important milestone in the negotiations. Reuters said the signing of the BIT will bring closer ties between the two largest economies in the world.