Snowden job? China may award US 'access all areas’ in investment talks
As the US lectures China over its ‘mishandling’ of NSA leaker Edward Snowden, Beijing has agreed to resume talks on an investment treaty with the US that could open up new business opportunities.
For the US business community, the otherwise embarrassing Snowden
scandal may prove to be a blessing in disguise in talks with
Chinese negotiators.
The United States has said it is "very disappointed" in
China for not handing over Edward Snowden, the former NSA
analyst-turned-whistleblower, who escaped to Hong Kong with a
laptop full of secrets in hand.
Meeting with Chinese envoys on Thursday, President Barack Obama
voiced "disappointment and concern" that Snowden was
allowed to leave Hong Kong on June 23 for Russia.
Speaking at a joint press conference, State Councilor Yang Jiechi
said that due to Hong Kong's autonomy, the region's decisions
were based on its laws and were "beyond reproach."
Despite the scandal, both powers agreed to restart investment
treaty talks.
American firms have been anxious to gain access to lucrative
Chinese markets as consumer demand among an expanding middle
class continues to explode. A deal between the two economic
superpowers could see key sectors of the Chinese economy open up
to American companies.
Chinese officials seem prepared to break with precedence and make
all sectors of its economy fair game to US investors.
US Treasury Secretary Jack Lew hailed the investment treaty
commitment as a sign of positive change in the
Communist-controlled country of 1.35 billion people.
"A high standard US-China bilateral investment treaty is a
priority for the United States and would work to level the
playing field for American workers and businesses by opening
markets for fair competition,'' Lew said in a statement.
"The commitment made today stands to be a significant
breakthrough and marks the first time China has agreed to
negotiate a Bilateral Investment Treaty, to include all sectors
and stages of investment, with another country," he added.
Chinese regulators will also release some audit documents of
US-listed Chinese companies to US securities regulators, Lew said
on Thursday, a move that is hoped to mitigate a dispute over
several accounting scandals.
Washington is looking for greater oversight after alleged
misconduct at Chinese firms listed in the US led to billions of
dollars in losses. Investigations into possible fraud have been
blocked as auditors have refused to turn over documents for fear
of violating Chinese privacy laws.
The decision to restart the bilateral talks was reached at
negotiations between American and Chinese officials in the US on
Thursday.