China’s Foreign Investment in the United States and European Union
Ongoing negotiations of bilateral investment treaties between China and the United States and European Union serve as the primary means for both sides to engage in economic policy discussions. Many believe that US firms are investing a lot in China, although the amounts have been modest in comparison with the flows between China and the European Union. This is largely due to the composition of their respective trade with each other and not just political sensitivities. Both the United States and the European Union are confronting China with concerns about its restrictive investment practices, pressures for technology transfer, and intellectual property theft at a time when China seeks to become more innovative by moving up the technology ladder. China complains about being subjected to excessive scrutiny by agencies such as the Committee on Foreign Investments in the United States. Views differ significantly, making it difficult to reach agreement on policy options.