An agreement with China could open up the nation’s massive market to American companies, and create jobs in both countries.
Chinese president pledges to cut investment barriers
Gene Johnson and Phuong Le, Associated Press 6:45 p.m. EDT September 23, 2015
SEATTLE – Chinese President Xi Jinping addressed Amazon founder Jeff Bezos, billionaire investor Warren Buffett and other top American and Chinese business leaders on Wednesday, pledging that his country would work to remove barriers to foreign investment and improve intellectual property protections.
Xi’s conference with the business leaders in Seattle marked the beginning of a busy day. He was also set to tour the Boeing and Microsoft campuses then visit a high school in Tacoma.
Apple Chief Executive Tim Cook, Microsoft CEO Satya Nadella and Jack Ma of Chinese e-commerce giant Alibaba also were among the 30 executives who attended a closed-door discussion moderated by former U.S. Treasury Secretary Henry Paulson that preceded Xi’s address.
Xi told the group in a speech that was open to media that China’s economy has “big potential” and leaders will continue to remove barriers to foreign investment.
“Without reform, there will be no driving force; without opening up, there will be no progress,” Xi said through an interpreter, echoing remarks he made during a speech Tuesday. “There is good news, and I believe there will be more good news in the future.”
Xi attributed the Chinese economy’s “moderation in speed and downward pressure with some ups and downs in the stock market” to three factors: world economic problems, proactive Chinese efforts at regulation, and “protracted structural problems” in China.
But, he said, “I believe in the long run that the fundamentals of the Chinese economy are good.”
A big item of concern for the American CEOs was a treaty that would provide a framework for broader investment in the economy of each nation.
All of the American CEOs participating in the forum signed a letter to Xi and President Barack Obama urging them to support an agreement, and they heard encouraging words from Xi on the topic Wednesday.
“Once concluded, the treaty will further ease market access and put in place more open and transparent market rules,” he said.
Bilateral investment treaties provide rules for companies doing business in other countries. The agreements can help ensure the rights of foreign investors are protected and that foreign companies operate on a level playing field with domestic ones.
An agreement with China could open up more of that nation’s massive market to American companies, provide clearer rules for Chinese investment in the U.S., and create jobs in both countries, supporters say.