China is urging the US to conclude the Bilateral Trade Agreement (BIT) currently being negotiated between both countries to avoid being influenced by the upcoming US presidential elections.

This was the recommendation made by former China's former Commerce Minister Chen Deming last Wednesday in light of US presidential candidate Donald Trump's recent statement wherein the latter pledged to impose tariffs on Chinese products to "level the playing field," China Daily reported.

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In his remarks at the Boao Forum for Asia in Boao, Hainan province, Chen revealed that the China and US had already concluded text negotiation on the trade agreement, as both sides are trying to find ways to shrink the so-called "negative list" before the talks move on to the issue of market access.

A "negative list" indicates specific bans or limitations on foreign investment. Businesses that are not included in the list are considered unrestricted.  

China has adopted this system in four pilot free trade zones, which include Shanghai, Tianjin, Guangdong and Fujian that started operations two years ago.

In a move to create a fair investment climate for foreign businesses, China is encouraging the US to exchange views on the negative list to conclude the talks.

Reuben Jeffery, president of Rockefeller and Co, explained the validation of BIT will have long-term benefits, as this would enable Chinese and US companies to operate in each other's market instead of looking for local partners to form joint ventures.

Once in place, this this China-US trade agreement would be flexible and allow them to control their finance operation and make investment decisions.       

Tagschina, US, trade agreement, bilateral trade agreement