U.S. Companies Hopes China’s President State Visit to Unlock Potential Cooperations
During President Xi Jinping’s US State Visit, the members of the America in Chamber of Commerce in China is hoping that the bilateral investment treaty on top of the agenda. This is probably because a high quality treaty will unlock potential services namely in the financial sector, education, logistics and healthcare that will bring immense benefits to the Chinese people and the companies they work for.
For the past ten years, foreign invested companies produced half of China’s exports that brought in much needed capital, designs and know how in sectors that pushed the country to middle income status. For now extra added value is difficult to obtain and once the start of the decade manufacturing output growth is been halved to below 7 percent and more than one in five AmCham China members that involved resources and industrial sectors which moved or planned to move capacity outside of China because of rising costs.
During its third Plenary Session in 2013, the 18th Central Committee of the Communist Party of China discussed major issues that concern the deepening of reform and to decide that the market must play a bigger role in the economy and to set the stage of reform. Since then the free trade zone was introduced and the State Council has published opinions that promote the increase in the quantity and quality of foreign investment in the service sector. Newly released regulations on bankcard clearing seems to end the domestic monopoly and Beijing is working on a pilot program that develops several important service industries.