CCIEE Releases BITT Research Report

CCIEE Releases BITT Research Report

On October 29, 2014, CCIEE held the 65th CCIEE Monthly Economic Talk, releasing research report of the BITT (Bilateral Investment and Trade Treaty).

At the 6th US-China CEOs and Former Officials’ Dialogue, CCIEE Chairman Mr. Zeng Peiyan, proposed to develop the BITT, which receives positive responses from Chinese and American delegates. The report “Promoting US-China BITT Negotiation: Towards Deeper US-China Economic and Trade Cooperation”, explains the foundation of the negotiation, significance, main content of BITT and recommendations on initiate the negotiation. Mr. Zhang Xiaoqiang, Vice Chairman of CCIEE, introduced the report and Ms. Chen Wenling, Chief Economist of CCIEE, presided over the meeting. Mr. Zhou Shijian, Professor of Tsinghua University and Mr. Zhao Zhongxiu, Vice President of University of International Business and Economics, also commented on the report.   

According to the report, Shanghai Pilot Free Trade Zone offers valuable experience to the US-China BIT Negotiation, which is currently on the fast track. Three factors have paved the way for the BITT negotiation. Firstly, both the US and China are seeking economic rebalance. Secondly, Chinese economy and the US economy are mutually complementary. Last but not least, China and the EU have also initiated the BIT (Bilateral Investment Treaty) negotiation. On top of the BIT negotiation, trade has also been added and thus a new negotiation known as BITT has been formed. Promoting US-China BITT negotiation and establishing institutionalized economic and trade relations will help the two countries to put their leading role into good use, enhance mutual trust, become the bridge of Asia-Pacific regional integration, facilitate liberation of world trade and investment and provide strong driving force for global economic prosperity and stability.

The US-China BITT is a high-level treaty and is based on the reality of the two countries, involving many key fields such as tariff, investment, agricultural and services trade, government procurement, intellectual property, and competition environment. Furthermore, the BITT will facilitate pragmatic cooperation in technological innovation, cyber security, infrastructure, clean energy and ecological environment between the US and China. According to the US-China economy and trade roadmap, the BITT negotiation should be carried out in three steps. Firstly, the two countries should finish the BIT negotiation as soon as possible. After that, they should add trade to the BIT and launch the BITT negotiation quickly. Lastly, on top of the BITT, they should start the US-China FTA negotiation and eventually realize regional integration in Asia-Pacific region and establish FTAAP (Free Trade Agreement of Asia-Pacific). In order to achieve that goal, the two countries should include BITT negotiation in the US-China strategic and economic dialogue, set up special team to work on it, support each other’s think tanks to conduct research cooperation on BITT, and make a proposal in this regard at the 4th Global Think Tank Summit, which will be held in 2015. Hopefully, Chinese and American governments will seek consensus at the APEC summit, to be held in November 2014, push forward the integration/connection of the TPP (Trans-Pacific Partnership) and RCEP (Regional Comprehensive Economic Partnership), and discuss China’s entry to TPP and America’s entry to RCEP.

Zhou Shijian pointed out that the research report of the BITT negotiation is very inspiring and has broad vision. The US-China BITT is an important milestone in the development of US-China economic and trade relations, and it will play a significant role in propelling the establishment of US-China FTA. Mr. Zhao Zhongxiu noted that the research report of the BITT is a very important report completed by CCIEE. The BITT, proposed by Mr. Zeng Peiyan, is wise, pragmatic and constructive. Among various negotiations on regional economic treaties around the world, the US-China BITT occupies a decisive position as it not only contributes to the improvement of multilateral mechanism, but also meets the requirement of deepening reform and opening-up in China. As CCIEE continues to make in-depth research on BITT, it will certainly play a considerable role in concluding the BITT and promoting stable development in US-China economic and trade cooperation.  

Some previous research reports were also presented at the meeting, including the Feasibility of US-China FTA, TPP and US-China FTA, Research on TPP and Promoting US-China Infrastructure and Bilateral Investment.