The Impact of US-China Bilateral Investment Treaty (BIT) on China’s Economy: an Analysis of the US 2004 Model BIT

　　Abstract: The US-China BIT is one of the main highlights of the second round of US-China Strategic and Economic Dialogue, to be held in Beijing in 2010. This paper compares the BIT’s benefits and impacts to China. According to the analysis in this article, the treaty would not attain its objective to bring about increasing direct investments and stock investments between China and the US were it be concluded based on US 2004 Model BIT. Furthermore, China would have to undertake huge risks on issues related to foreign investment restrictions and governance of cross-border capital flows.

　　Authors: TIAN Feng, Senior Fellow, Institute of World Economics and Politics, Chinese Academy of Social Sciences