The China-US Investment Treaty has drawn worldwide attention, with many believing the result could cast great influence on global trade rules.
Wang Xinkui, the director of the Counsellor’s Office of the Shanghai municipal government, has reiterated the changes in the global investment condition. Different from the traditional way of developed countries investing in developing countries, more and more emerging economies such as China and Brazil are now rapidly increasing their investments in the developed world. Such changes require new international investment rules, and the investment treaty talks between China and the United States will definitely influence the drawn up of such regulations.
"The China-US bilateral investment treaty talks actually include several sectors, the first is equal treatment. The second is total rights protection, including the rules on environment standard and dispute settlement. The third is related services, and the fourth is balancing benefits," said Wang Xinkui, director of Counsellor's Office of Shanghai.
The basis of the negotiation are the Pre-establishment National Treatment, which means foreign investors will be treated the same as domestic ones, and the negative list, a list of sectors in China’s economy that are off limits to foreign investment. Wang Xinkui said the key for the talks is to set up transparent rules.The final result may lead to big changes in China’s managements on foreign investment and macro control, so it is even harder than the WTO entrance negotiation.
"The negotiation to join the WTO involved tariff and trade facilitation. It’s like talking about rules used in your courtyard. But the talks on investment treaty involves many specific and domestic issues, it’s like negotiating the rules used in your living room or bedroom," said Wang Xinkui, director of Counsellor's Office of Shanghai.
Wang Xinkui said he is cautiously optimistic about the negotiation results, as both sides will try to win the utmost benefits and security.
Source: CCTV
