10 The Chinese Investment Regime and the US-China BIT Negotiations

Abstract

In June 2013, during the Fifth Meeting of the U.S. China Strategic and Economic Dialogue, China indicated that it would continue taking steps to liberalize its investment and trade regime, including intensifying negotiations over a US-China Bilateral Investment Treaty (BIT). The US-China BIT negotiations have been ongoing since the June 2008 Strategic Economic Dialogue. The Bush Administration and Hu Jintao's government started talks, unofficially, 17 months before the Strategic Economic Dialogue. They soon announced that they were entering into negotiations with high hopes and ambitions for a new BIT. A US-China BIT would be unique, it does not fit the typical dynamics between states signing BITs. The most important feature is the sheer quantity of capital that flows between the US and China. Though China has BITs with other major capital exporters and importers, the US is only second to Australia in terms of total investment from China. Keywords: Australia; investment regime; Strategic Economic Dialogue; US-China Bilateral Investment Treaty (BIT)