Washington and Beijing began formal negotiations towards a bilateral investment treaty (BIT) in June 2008. A year later, the highly sensitive talks were halted until July 2013. The US is interested in getting Chinese restrictions on foreign ownership in about 100 sectors — from soybean oil and automobiles to life insurance and other financial services — lifted for US companies which want to expand their market presence there. The Chinese government is interested in getting more security for highly-scrutinised Chinese investments in the US and its massive holdings of US sovereign debt ($1.3 trillion).
In late 2013, China agreed to initiate talks on a possible BIT with the European Union as well.
Joe Biden will not immediately cancel the Phase 1 trade agreement that President Donald Trump struck with China nor take steps to remove tariffs on Chinese exports.
Purchases of manufactured goods and energy eased last month. But soybean shipments nearly tripled and aircraft also surged.
Purchases of soybeans, oil surge in September, data show. China is still lagging its full-year target agreed with US.
Despite the spending spree during the summer months, China is nowhere near meeting the overall targets set out in the phase one trade deal.
Top US and Chinese trade officials reaffirmed their commitment to a Phase 1 trade deal, which has seen China lagging on its obligations to buy American goods.
US and Chinese trade negotiators held a phone call about implementing the phase one agreement between the two countries.
China and the United States have agreed to hold trade talks “in the coming days” to evaluate the progress of their Phase 1 trade deal six months after it took effect in February.
The United States and China have delayed a review of their Phase 1 trade deal, citing scheduling conflicts and the need to allow time for more Chinese purchases of US exports.
White House economic adviser said the Trump administration is satisfied with China’s progress in meeting commitments to purchase U.S. goods in a Phase 1 trade deal.
Given the global coronavirus recession, China is lagging behind its first-year goal of a $77 billion rise in purchases.