US-China ‘Board of Investment’ stalls before expected Trump-Xi meeting

The US-China Board of Investment, established as part of the May meeting between US President Donald Trump and Chinese leader Xi Jinping, is unlikely to feature in their upcoming summit in Washington, according to Sean Stein, president of the US-China Business Council. Stein noted that neither side has initiated consultations on the matter, indicating a lack of readiness for discussions with the private sector.

The creation of the Board of Investment and a new Board of Trade as mechanisms for managing business ties between the world's two largest economies was announced in May. While negotiations for the Board of Trade are progressing, progress on the investment board has stalled. Wendy Cutler, senior vice-president at the Asia Society Policy Institute, suggested that the delay stems from differing views within the administration and Congress on the benefits and risks of Chinese foreign direct investment (FDI) in the US.

The US has been cautious about Chinese investment, citing concerns over espionage, state subsidies, and unfair competition. Despite this, there are signs of increased focus on the Board of Trade, with both sides setting a "guiding objective" to expand two-way agricultural trade and agreeing to include farm products in a framework for reciprocal tariff reductions.

Although the Board of Trade is making slow progress, questions remain over the specific mandates of both boards, and diplomatic activity ahead of the summit is notably less intense compared to previous administrations.