Sino-US trade is massive, and the two countries are global economic giants, but the size of investment between them is relatively small. To increase the bilateral investment, the two sides should first of all accelerate negotiations on the Bilateral Investment Treaty (BIT), according to an editorial run by financial news portal yicai.com.
The economic and trade relations between China and the US have grown increasingly close in recent years. Unlike the past, Chinese enterprises have been setting up factories in the US, and the Chinese market creates trade opportunity for American goods - like e-commerce giant Alibaba, which helps American small businesses sell goods in China, said the editorial.
Nevertheless, there's plenty of future space for the two sides to cooperate, the editorial noted. Bilateral investment is one aspect; although growing quickly, there's plenty of space for it to develop further.
While some Chinese enterprises are entering the US, bilateral relations - especially investment frictions - must be handled carefully to create new areas of growth and jobs for the two economies. The BIT, according to the editorial, can play an indispensable role in this process.
The BIT negotiations were launched nearly a decade ago, and by far 28 rounds of negotiations have been held. The reason for both sides' persistence is because that BIT is arguably the most important bilateral investment agreement they can forge.
But concluding the treaty is not possible without concerted efforts between China and the US, including necessary concessions. For example, the Administration of Quality Supervision, Inspection and Quarantine of China issued an announcement on June 21, allowing American beef to be exported to China again. If both sides are willing to compromise, an important deal can be struck.
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