U.S. Chamber Encouraged Following Conclusion of U.S.-China Strategic & Economic Dialogue

‘Today’s Outcomes, If Fully Implemented, Offer Tangible Results That Will Improve the Environment for American Business,’ Says Brilliant

WASHINGTON, D.C.—Myron Brilliant, senior vice president of international affairs at the U.S. Chamber of Commerce, issued the following statement today at the conclusion of the U.S.-China Strategic & Economic Dialogue (S&ED) in Beijing:

“The U.S. Chamber is encouraged by the outcomes announced following the conclusion of today’s S&ED.  We believe they provide a solid basis for the two sides to engage in the coming months and years to promote market-based economic reforms that support rebalancing, increase two-way commercial opportunities, strengthen and promote innovation, and protect and enforce intellectual property rights.

“Today’s outcomes, if fully implemented, offer near-term tangible results that will improve the environment for American business as well as medium-term commitments that can advance market-based reforms in China and help to level the playing field for U.S. companies in China and third-country markets.

“In particular, the Chamber welcomes China’s commitments to allow foreign investors to take up to 49% equity stakes in domestic securities joint ventures; to establish joint venture brokerages to trade commodity and financial future with 49% equity; and to accelerate implementation of its prior commitments to allow U.S. insurance companies to sell mandatory auto liability insurance.  The Chamber and U.S. Engage sent a letter to Treasury Secretary Timothy Geithner prior to the S&ED calling for financial liberalization, and we applaud the efforts of both governments in producing concrete results.

“We also welcome reaffirmation of prior commitments in the areas of transparency and intellectual property, including software legalization by state-owned enterprises.  The Chamber will continue to monitor closely to ensure that negotiators follow through on past commitments in these critical areas to American business.

“New commitments by China to curb favoritism for SOEs in all forms, intensify discussions on forced technology transfer and trade secret protection, open up further to foreign investment, and address long-standing concerns regarding the transparency of investment approvals, are encouraging steps forward and provide the basis for progress going forward.  At the same time, the value of today’s commitments will be measured in the future against material changes in China’s application of its laws and regulations to its SOEs and U.S. investors as well as new market access for American companies.

“The Chamber supports both governments re-starting negotiations on a high-standard bilateral investment treaty (BIT).  We believe a BIT has the potential to significantly advance two-way investment, level the playing field for U.S. investors and increase protections for both sides.  As the administration re-commences negotiations, we urge it to seek an upfront, clear and public commitment that long-standing core elements of the U.S. BIT program, including pre-establishment, on a negative list basis, are acceptable to China.  In addition, we applaud the administration’s efforts to include SOE provisions in its trade and investment agreements and request that any BIT negotiations with China incorporate and build upon the latest provisions.  This will ensure that a future BIT with China protects U.S. companies that compete with state-owned and state-invested enterprises, consistent with this year’s S&ED commitments on state-owned enterprises.”

The U.S. Chamber of Commerce is the world’s largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.