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Business / Economy

Fiscal cliff looms large over Sino-US trade talks

By Chen Weihua in Washington and Li Jiabao, Li Xiaokun in Beijing (China Daily) Updated: 2012-12-19 02:49

"I don't think we should be expecting sweeping changes, but I do think we will see tangible progress on some specific issues," said John Frisbie, president of the US-China Business Council.

"China is definitely prioritizing its US relations and they are also discussing economic reforms back at home that could impact some of the issues that matter to US companies."

The meeting has become a central forum for the management of the US-China economic relationship. Along with the Strategic and Economic Dialogue, it is a valuable platform to discuss disputes, said Edward Alden, a senior fellow at the Council on Foreign Relations.

"The Obama administration has been working on a significant overhaul of its export restrictions on high-technology goods, and there are genuine prospects for progress in the second term," he said.

Alden believes the lack of protection for intellectual property rights in China continues to be a major irritant in relations. "The big problem is that the tools for enforcement are inadequate," he said.

He said he will be particularly interested to see if there is any progress in discussion over a bilateral investment treaty between the US and China.

Karl Sauvant, a resident senior fellow at the Vale Columbia Center on Sustainable International Investment at Columbia University, echoed Alden's views.

He said the meeting is an excellent opportunity to reconfirm on both sides that the negotiation for a trade treaty between China and the US is in the interests of both sides.

"Naturally, the negotiations will present a number of challenges that need to be met, and some issues may even require decisions on the political level, but I think it is certainly worthwhile to press ahead with them," said Sauvant, editor of the book Is the US Ready for FDI from China?

Contact the writers at chenweihua@chinadaily.com.cn.

Reuters contributed to this story.

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