US treaty could threaten growth

The US and China discussed a bilateral investment treaty (BIT) at the Sino-American Strategic and Economic Dialogue (SE&D) in May. If the final negotiated text looks like the majority of US BITs it could threaten financial stability and economic growth in China.

The US and China began negotiations toward a BIT in 2008 under the George W. Bush administration. After taking office, US President Barack Obama gave his seal of approval to the negotiations at the November 2009 SE&D when the two nations agreed to "expedite" them.

China's development over the past 30 years has been unprecedented. Not only has per capita growth been faster than 8 percent a year throughout the period, but according to the World Bank, China has also brought 300 million people - a number roughly the size of the entire population in the US - out of poverty.