CHINA will submit next week its “negative list” offer of sectors that would remain off-limits to U.S. investment in a China-U.S. bilateral investment treaty (BIT), Vice Premier Wang Yang said yesterday.

    Wang made the comments in opening remarks to the economic track of the China-U.S. Strategic and Economic Dialogue talks in Beijing.

    U.S. officials have said a negative list that greatly reduces the number of off-limits sectors is critical to reaching a deal.

    U.S. Treasury Secretary Jack Lew also said he looked forward to seeing the new negative list when U.S. and Chinese BIT negotiators meet next week in Washington.

    “The United States stands ready to advance the ongoing bilateral investment treaty negotiations provided that China is prepared to move forward in negotiating a high-standard and mutually beneficial agreement,” Lew said.

    Lew also urged China to remain clear in their communications about foreign exchange policy and implementation.

    “A market-determined exchange rate with two-way flexibility will help foster a more efficient allocation of capital,” he said.

    Lew said earlier he hoped the two countries would make progress on market access issues as well as the problem of excess industrial capacity in China during this week’s talks.

    Wang highlighted the difficulties arising from the rising interest-rate trend in the United States.

    “Expectations on interest rate rises by the U.S. Federal Reserve have increased uncertainties on economic growth of emerging market economies,” Wang said.

    Chinese President Xi Jinping yesterday urged China and the United States to properly manage differences and sensitive issues and deepen strategic mutual trust and cooperation at the high-level bilateral dialogue.

    The differences between China and the United States are normal, Xi said at the joint opening ceremony of the eighth round of China-U.S. Strategic and Economic Dialogues (S&ED) and the seventh round of China-U.S. High-Level Consultation on People-to-People Exchange (CPE) in Beijing.

    As long as the two sides tackle differences and sensitive issues in the principle of mutual respect and equality, major disturbances in bilateral relations can be avoided, Xi said, adding that China and the United States should strengthen communication and cooperation on Asia-Pacific affairs.

    China and the United States should strengthen their mutual trust through regular communication in order to avoid strategic misjudgment, he said.

    The Chinese president also called on the two sides to expand mutually beneficial cooperation, uphold the win-win principle, and raise the level of bilateral cooperation.(SD-Agencies)