US-China negotiators race to nail down concrete deals as Shenzhen Apec looms
The US and China are racing to secure concrete investment deals ahead of their leaders’ meeting in Shenzhen next month, even as both sides engage in a contest over leverage in extending their broad trade agreement. Multiple sources told the South China Morning Post that intense negotiations would continue in coming weeks, with Washington and Beijing still facing hurdles to finalising a complex…
U.S. and Chinese negotiators are making intense efforts to finalize significant investment agreements prior to the upcoming Shenzhen APEC summit. Both nations are engaged in a strategic power struggle to secure leverage for their ongoing trade agreement extension. Despite making substantial progress on the Board of Investment discussions since their May meeting in Washington, significant hurdles remain in finalizing the comprehensive package of institutional frameworks and economic agreements.
The two leaders are set to meet again during the APEC summit in China's southern tech hub of Shenzhen next month, marking their second encounter in two months and third this year. The Board of Investment, a crucial component from their May summit in Beijing, has faced political opposition in the U.S. over potential Chinese investments, particularly from the automotive sector, but discussions on establishing a Board of Trade have since been successful.
Negotiators are closely following the model of a recently established trade forum to formalize the investment forum's structure and mandate. The Board of Investment is expected to serve as an institutionalized communication platform, with US Treasury Secretary Scott Bessent and Trade Representative Jamie Jamieson Greer leading the US delegation alongside Chinese Vice-Premier He Lifeng.
Discussions are centered around a shortlist of potential investment opportunities in the U.S., primarily in non-sensitive sectors such as electric vehicles, battery storage, and power equipment infrastructure. However, political sensitivities and commercial risks remain significant concerns. Several sources also noted that the investment board is still grappling with major gaps and opposition from US business leaders who fear exposing domestic industries to increased competition from Chinese firms.
While some analysts believe large-scale, long-term Chinese investments in the U.S. are unlikely, both sides recognize that an extension of the trade truce is essential. The two-month extension agreed upon at the September APEC summit in Busan, South Korea, is seen as an opportunity to strengthen bargaining positions on purchase commitments, particularly for Boeing aircraft and critical mineral supplies, which both sides view as strategic leverage.
Negotiations may extend into the G20 summit in December if they are not concluded in time for the APEC announcement.
Written by urgent.news from Reuters Business via SCMP's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
