US-China announce sweeping economic commitments

A framework for the talks was established when President Obama and Chinese President Xi Jinping met last month in California, Lew said. 

Lew, Secretary of State John Kerry, U.S. Trade Representative Michael Froman, along with several other top officials met with the Chinese delegation led by Vice Premier Wang Yang and state counselor Yang Jiechi. 

A highlight of the talks was China’s announcement of its intention to negotiate a high-standard bilateral investment treaty (BIT) that will include all stages of investment and all sectors,” a significant breakthrough and the first time China has agreed to do so with another country,” Lew said. 

There was a “healthy discussion” among our senior economic officials about growing U.S. concerns with cyber-enabled theft and the need to find a solution to the problem as well as better protecting trade secrets and intellectual property. 

As part of its broader reform agenda, China has committed to open further to foreign investment, including through the recently announced Shanghai Free Trade Zone pilot for the services sector.

China announced that it intends to submit a revised offer to join the WTO Government Procurement Agreement by the end of the year. The nation plans to start intensive technical discussions with the United States this summer.

China will undertake further exchange rate reform and is actively considering joining the international standard for public reporting of reserves data, the IMF’s Special Data Dissemination Standard (SDDS), which has led the way in enhancing foreign exchange reserve transparency.

Going forward, China’s leaders have indicated that they will continue to make significant changes to the financial system, state-owned enterprises, and the existing mix of taxes on businesses. 

China’s securities regulator also said it will begin providing certain requested audit work papers to U.S. market regulators, “an important step toward resolving a long-standing impasse on enforcement cooperation related to companies that are listed in the United States,” Lew said. 

“We welcome the important steps that China’s leaders have taken and encourage them to follow through on the commitments they have made,” Lew said.  

“We want China to succeed in implementing these reforms because a prosperous China is not only good for China but also good for the United States, and for the world as a whole,” he said.

“While today’s commitments do not resolve all of the concerns of either side, they do represent real progress, progress that will create new opportunities for U.S. workers and companies in an expanding Chinese market.”