{"id":160046,"date":"2013-07-19T22:17:54","date_gmt":"2013-07-20T05:17:54","guid":{"rendered":"http:\/\/chinadigitaltimes.net\/?p=160046"},"modified":"2013-07-19T22:17:54","modified_gmt":"2013-07-20T05:17:54","slug":"can-a-u-s-china-investment-treaty-become-reality","status":"publish","type":"post","link":"https:\/\/chinadigitaltimes.net\/2013\/07\/can-a-u-s-china-investment-treaty-become-reality\/","title":{"rendered":"Can a U.S.-China Investment Treaty Become Reality?"},"content":{"rendered":"<p>The latest round of the U.S.-China Strategic and Economic Dialogue Talks concluded last week with China <a href=\"http:\/\/www.washingtonpost.com\/world\/national-security\/china-substantive-negotiations-with-us-on-a-bilateral-investment-treaty-can-begin-soon\/2013\/07\/11\/e6250c50-ea91-11e2-818e-aa29e855f3ab_story.html\">agreeing to negotiate a bilateral investment treaty<\/a> with the United States, which U.S. Treasury Secretary Jacob Lew <a href=\"http:\/\/www.treasury.gov\/press-center\/press-releases\/Pages\/jl2008.aspx\">hailed as a &#8220;significant breakthrough&#8221;<\/a> in his closing remarks at the summit. The Diplomat&#8217;s Eve Cary writes that <a href=\"\u201can investment treaty would give China a lot more clarity about the rules of the road, give it a way to appeal for compensation if a deal is blocked, and provide China something of an overall seal of approval.\u201d  This is important since Chinese investment has hit a number of roadblocks over the years.  (In fact, an earlier post from The Diplomat elaborated on the difficulties the Chinese have had with investing in the U.S. market.) Meanwhile for the US, the treaty would further open market access to China, pleasing U.S. business interests.  However, this agreement is only the first step in what will most likely be a very long journey. The Heritage Foundation\u2019s Derek Scissors doesn\u2019t see a BIT implemented until 2017, noting a number of roadblocks, including Congressional opposition.  He believes that \u201cAmerican business and government may be seeing their hopes and dreams for the Chinese market rather than what is actually on the table.\u201d    Skepticism is not just coming from more conservative commentators either. Nicholas Lardy of the nonpartisan Peterson Institute for International Economics comments, \u201cIt\u2019s a noble goal but one which will be very difficult to conclude in any reasonable time period and it might well fail.\u201d  On the U.S. side, a bilateral investment treaty would need two-thirds approval in the Senate, and Chinese investment has sparked (and will continue to spark) concerns about national security interests and the wisdom of foreign ownership in certain sectors. For example, China\u2019s Shuanghui International\u2019s recent proposal to buy Smithfield Foods has ignited debate about Chinese involvement in U.S. food supplies, particularly in light of China\u2019s own food safety challenges.  Indeed, an investment treaty would not put an end to American fears about Chinese investment in the United States.\"><strong>the news is a step in the right direction<\/strong><\/a>, though &#8220;immense challenges remain&#8221;:<\/p>\n<blockquote><p><a href=\"http:\/\/online.wsj.com\/article\/SB10001424127887324694904578600264002584402.html\">The Wall Street Journal commented<\/a>\u00a0that an investment treaty would have innumerable benefits for the Chinese: \u201can investment treaty would give China a lot more clarity about the rules of the road, give it a way to appeal for compensation if a deal is blocked, and provide China something of an overall seal of approval.\u201d\u00a0 This is important since Chinese investment has hit a number of roadblocks over the years.\u00a0 (In fact, an earlier post from\u00a0<em><a href=\"http:\/\/thediplomat.com\/china-power\/understanding-chinas-efforts-to-invest-overseas\/?all=true\">The Diplomat<\/a>\u00a0<\/em>elaborated on the difficulties the Chinese have had with investing in the U.S. market.) Meanwhile for the US, the treaty would further open market access to China, pleasing U.S. business interests.<\/p>\n<p>However, this agreement is only the first step in what will most likely be a very long journey. The Heritage Foundation\u2019s Derek Scissors doesn\u2019t see a BIT implemented until 2017,\u00a0<a href=\"http:\/\/blog.heritage.org\/2013\/07\/12\/an-investment-treaty-with-china-dont-hold-your-breath\/\">noting a number of roadblocks<\/a>, including Congressional opposition.\u00a0 He believes that \u201cAmerican business and government may be seeing their hopes and dreams for the Chinese market rather than what is actually on the table.\u201d<\/p>\n<p>Skepticism is not just coming from more conservative commentators either. Nicholas Lardy of the nonpartisan Peterson Institute for International Economics\u00a0<a href=\"http:\/\/blogs.wsj.com\/chinarealtime\/2013\/07\/12\/u-s-china-investment-treaty-less-than-meets-the-eye\/\">comments<\/a>, \u201cIt\u2019s a noble goal but one which will be very difficult to conclude in any reasonable time period and it might well fail.\u201d<\/p>\n<p>On the U.S. side, a bilateral investment treaty would need two-thirds approval in the Senate, and Chinese investment has sparked (and will continue to spark) concerns about national security interests and the wisdom of foreign ownership in certain sectors. For example,\u00a0<a href=\"http:\/\/online.wsj.com\/article\/SB10001424127887324412604578512722044165756.html\">China\u2019s Shuanghui International\u2019s recent proposal to buy Smithfield Foods<\/a>\u00a0has ignited debate about Chinese involvement in U.S. food supplies, particularly in light of China\u2019s own food safety challenges.\u00a0 Indeed, an investment treaty would not put an end to American fears about Chinese investment in the United States. [<a href=\"http:\/\/thediplomat.com\/china-power\/the-promise-and-peril-of-a-us-china-investment-treaty\/\"><strong>Source<\/strong><\/a>]<\/p><\/blockquote>\n<p>See also a 91-point <a href=\"http:\/\/usa.chinadaily.com.cn\/world\/2013-07\/17\/content_16785837.htm\">summary of the outcomes of the forum<\/a>, published by China&#8217;s Ministry of Foreign Affairs via the China Daily.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The latest round of the U.S.-China Strategic and Economic Dialogue Talks concluded last week with China agreeing to negotiate a bilateral investment treaty with the United States, which U.S. Treasury Secretary Jacob Lew hailed as a &#8220;significant breakthrough&#8221; in his closing remarks at the summit. The Diplomat&#8217;s Eve Cary writes that the news is a [&hellip;]<\/p>\n","protected":false},"author":983,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[2,14744,14745,14746,100,1],"tags":[13830,1201,16017,7702],"class_list":["post-160046","post","type-post","status-publish","format-standard","hentry","category-economy","category-level-2-article","category-level-3-article","category-level-4-article","category-politics","category-uncategorized","tag-bilateral-trade","tag-foreign-investment","tag-jacob-lew","tag-us-relations","et-doesnt-have-format-content","et_post_format-et-post-format-standard"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.9 (Yoast SEO v23.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Can a U.S.-China Investment Treaty Become Reality?<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"http:\/\/chinadigitaltimes.net\/2013\/07\/can-a-u-s-china-investment-treaty-become-reality\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Can a U.S.-China Investment Treaty Become Reality?\" \/>\n<meta property=\"og:description\" content=\"The latest round of the U.S.-China Strategic and Economic Dialogue Talks concluded last week with China agreeing to negotiate a bilateral investment treaty with the United States, which U.S. Treasury Secretary Jacob Lew hailed as a &#8220;significant breakthrough&#8221; in his closing remarks at the summit. The Diplomat&#8217;s Eve Cary writes that the news is a [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"http:\/\/chinadigitaltimes.net\/2013\/07\/can-a-u-s-china-investment-treaty-become-reality\/\" \/>\n<meta property=\"og:site_name\" content=\"China Digital Times (CDT)\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/ChinaDigitalTimes\" \/>\n<meta property=\"article:published_time\" content=\"2013-07-20T05:17:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/chinadigitaltimes.net\/wp-content\/uploads\/2021\/08\/CDT-logo.png\" \/>\n\t<meta property=\"og:image:width\" content=\"186\" \/>\n\t<meta property=\"og:image:height\" content=\"177\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Scott Greene\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cdt\" \/>\n<meta name=\"twitter:site\" content=\"@cdt\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Scott Greene\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"http:\/\/chinadigitaltimes.net\/2013\/07\/can-a-u-s-china-investment-treaty-become-reality\/#article\",\"isPartOf\":{\"@id\":\"http:\/\/chinadigitaltimes.net\/2013\/07\/can-a-u-s-china-investment-treaty-become-reality\/\"},\"author\":{\"name\":\"Scott Greene\",\"@id\":\"https:\/\/chinadigitaltimes.net\/#\/schema\/person\/3393334e12ee6be1f84abbe56c37b108\"},\"headline\":\"Can a U.S.-China Investment Treaty Become Reality?\",\"datePublished\":\"2013-07-20T05:17:54+00:00\",\"dateModified\":\"2013-07-20T05:17:54+00:00\",\"mainEntityOfPage\":{\"@id\":\"http:\/\/chinadigitaltimes.net\/2013\/07\/can-a-u-s-china-investment-treaty-become-reality\/\"},\"wordCount\":413,\"publisher\":{\"@id\":\"https:\/\/chinadigitaltimes.net\/#organization\"},\"keywords\":[\"bilateral trade\",\"foreign investment\",\"Jacob Lew\",\"U.S. relations\"],\"articleSection\":[\"Economy\",\"Level 2 Article\",\"Level 3 Article\",\"Level 4 Article\",\"Politics\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"http:\/\/chinadigitaltimes.net\/2013\/07\/can-a-u-s-china-investment-treaty-become-reality\/\",\"url\":\"http:\/\/chinadigitaltimes.net\/2013\/07\/can-a-u-s-china-investment-treaty-become-reality\/\",\"name\":\"Can a U.S.-China Investment Treaty Become Reality?\",\"isPartOf\":{\"@id\":\"https:\/\/chinadigitaltimes.net\/#website\"},\"datePublished\":\"2013-07-20T05:17:54+00:00\",\"dateModified\":\"2013-07-20T05:17:54+00:00\",\"breadcrumb\":{\"@id\":\"http:\/\/chinadigitaltimes.net\/2013\/07\/can-a-u-s-china-investment-treaty-become-reality\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"http:\/\/chinadigitaltimes.net\/2013\/07\/can-a-u-s-china-investment-treaty-become-reality\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"http:\/\/chinadigitaltimes.net\/2013\/07\/can-a-u-s-china-investment-treaty-become-reality\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/chinadigitaltimes.net\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Can a U.S.-China Investment Treaty Become Reality?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/chinadigitaltimes.net\/#website\",\"url\":\"https:\/\/chinadigitaltimes.net\/\",\"name\":\"China Digital Times (CDT)\",\"description\":\"Covering China from Cyberspace\",\"publisher\":{\"@id\":\"https:\/\/chinadigitaltimes.net\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/chinadigitaltimes.net\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/chinadigitaltimes.net\/#organization\",\"name\":\"China Digital Times\",\"url\":\"https:\/\/chinadigitaltimes.net\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/chinadigitaltimes.net\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/chinadigitaltimes.net\/wp-content\/uploads\/2021\/08\/CDT-logo.jpg\",\"contentUrl\":\"https:\/\/chinadigitaltimes.net\/wp-content\/uploads\/2021\/08\/CDT-logo.jpg\",\"width\":186,\"height\":177,\"caption\":\"China Digital Times\"},\"image\":{\"@id\":\"https:\/\/chinadigitaltimes.net\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/ChinaDigitalTimes\",\"https:\/\/x.com\/cdt\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/chinadigitaltimes.net\/#\/schema\/person\/3393334e12ee6be1f84abbe56c37b108\",\"name\":\"Scott Greene\",\"description\":\"Scott Greene grew up in Singapore and graduated from Middlebury College with a degree in East Asian Studies. His chief interests are Asian politics, business, media, information control, and international affairs.\",\"url\":\"https:\/\/chinadigitaltimes.net\/author\/scott-greene\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Can a U.S.-China Investment Treaty Become Reality?","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"http:\/\/chinadigitaltimes.net\/2013\/07\/can-a-u-s-china-investment-treaty-become-reality\/","og_locale":"en_US","og_type":"article","og_title":"Can a U.S.-China Investment Treaty Become Reality?","og_description":"The latest round of the U.S.-China Strategic and Economic Dialogue Talks concluded last week with China agreeing to negotiate a bilateral investment treaty with the United States, which U.S. Treasury Secretary Jacob Lew hailed as a &#8220;significant breakthrough&#8221; in his closing remarks at the summit. The Diplomat&#8217;s Eve Cary writes that the news is a [&hellip;]","og_url":"http:\/\/chinadigitaltimes.net\/2013\/07\/can-a-u-s-china-investment-treaty-become-reality\/","og_site_name":"China Digital Times (CDT)","article_publisher":"https:\/\/www.facebook.com\/ChinaDigitalTimes","article_published_time":"2013-07-20T05:17:54+00:00","og_image":[{"width":186,"height":177,"url":"https:\/\/chinadigitaltimes.net\/wp-content\/uploads\/2021\/08\/CDT-logo.png","type":"image\/png"}],"author":"Scott Greene","twitter_card":"summary_large_image","twitter_creator":"@cdt","twitter_site":"@cdt","twitter_misc":{"Written by":"Scott Greene","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"http:\/\/chinadigitaltimes.net\/2013\/07\/can-a-u-s-china-investment-treaty-become-reality\/#article","isPartOf":{"@id":"http:\/\/chinadigitaltimes.net\/2013\/07\/can-a-u-s-china-investment-treaty-become-reality\/"},"author":{"name":"Scott Greene","@id":"https:\/\/chinadigitaltimes.net\/#\/schema\/person\/3393334e12ee6be1f84abbe56c37b108"},"headline":"Can a U.S.-China Investment Treaty Become Reality?","datePublished":"2013-07-20T05:17:54+00:00","dateModified":"2013-07-20T05:17:54+00:00","mainEntityOfPage":{"@id":"http:\/\/chinadigitaltimes.net\/2013\/07\/can-a-u-s-china-investment-treaty-become-reality\/"},"wordCount":413,"publisher":{"@id":"https:\/\/chinadigitaltimes.net\/#organization"},"keywords":["bilateral trade","foreign investment","Jacob Lew","U.S. relations"],"articleSection":["Economy","Level 2 Article","Level 3 Article","Level 4 Article","Politics"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"http:\/\/chinadigitaltimes.net\/2013\/07\/can-a-u-s-china-investment-treaty-become-reality\/","url":"http:\/\/chinadigitaltimes.net\/2013\/07\/can-a-u-s-china-investment-treaty-become-reality\/","name":"Can a U.S.-China Investment Treaty Become Reality?","isPartOf":{"@id":"https:\/\/chinadigitaltimes.net\/#website"},"datePublished":"2013-07-20T05:17:54+00:00","dateModified":"2013-07-20T05:17:54+00:00","breadcrumb":{"@id":"http:\/\/chinadigitaltimes.net\/2013\/07\/can-a-u-s-china-investment-treaty-become-reality\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["http:\/\/chinadigitaltimes.net\/2013\/07\/can-a-u-s-china-investment-treaty-become-reality\/"]}]},{"@type":"BreadcrumbList","@id":"http:\/\/chinadigitaltimes.net\/2013\/07\/can-a-u-s-china-investment-treaty-become-reality\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/chinadigitaltimes.net\/"},{"@type":"ListItem","position":2,"name":"Can a U.S.-China Investment Treaty Become Reality?"}]},{"@type":"WebSite","@id":"https:\/\/chinadigitaltimes.net\/#website","url":"https:\/\/chinadigitaltimes.net\/","name":"China Digital Times (CDT)","description":"Covering China from Cyberspace","publisher":{"@id":"https:\/\/chinadigitaltimes.net\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/chinadigitaltimes.net\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/chinadigitaltimes.net\/#organization","name":"China Digital Times","url":"https:\/\/chinadigitaltimes.net\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/chinadigitaltimes.net\/#\/schema\/logo\/image\/","url":"https:\/\/chinadigitaltimes.net\/wp-content\/uploads\/2021\/08\/CDT-logo.jpg","contentUrl":"https:\/\/chinadigitaltimes.net\/wp-content\/uploads\/2021\/08\/CDT-logo.jpg","width":186,"height":177,"caption":"China Digital Times"},"image":{"@id":"https:\/\/chinadigitaltimes.net\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/ChinaDigitalTimes","https:\/\/x.com\/cdt"]},{"@type":"Person","@id":"https:\/\/chinadigitaltimes.net\/#\/schema\/person\/3393334e12ee6be1f84abbe56c37b108","name":"Scott Greene","description":"Scott Greene grew up in Singapore and graduated from Middlebury College with a degree in East Asian Studies. His chief interests are Asian politics, business, media, information control, and international affairs.","url":"https:\/\/chinadigitaltimes.net\/author\/scott-greene\/"}]}},"_links":{"self":[{"href":"https:\/\/chinadigitaltimes.net\/wp-json\/wp\/v2\/posts\/160046","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chinadigitaltimes.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/chinadigitaltimes.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/chinadigitaltimes.net\/wp-json\/wp\/v2\/users\/983"}],"replies":[{"embeddable":true,"href":"https:\/\/chinadigitaltimes.net\/wp-json\/wp\/v2\/comments?post=160046"}],"version-history":[{"count":0,"href":"https:\/\/chinadigitaltimes.net\/wp-json\/wp\/v2\/posts\/160046\/revisions"}],"wp:attachment":[{"href":"https:\/\/chinadigitaltimes.net\/wp-json\/wp\/v2\/media?parent=160046"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/chinadigitaltimes.net\/wp-json\/wp\/v2\/categories?post=160046"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/chinadigitaltimes.net\/wp-json\/wp\/v2\/tags?post=160046"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}