Representatives therefore agreed that the launch of negotiations by the two governments at an appropriate time would be of great significance and importance to advancing the healthy development of US-China economic relations.

Participants agreed that both countries should embark on step-by-step efforts toward the launch of US-China Trade and Investment Agreement negotiations, consistent with vision and goals of the US-China Strategic and Economic Dialogue.

Representatives called on their governments to work together, prior to launching negotiations on a US-China Trade and Investment Agreement, to seek ways to achieve significant further opening of trade and investment relations between the two countries. Representatives agreed that such steps can be building blocks toward a US-China Trade and Investment Agreement.

Participants agreed that a Doha Round Early Harvest Agreement at the upcoming WTO Ministerial in Bali, covering trade facilitation, agriculture and development, and championed jointly by the US and Chinese governments, would not only provide a solid foundation for the completion of the Doha Round, but also build confidence for increased US-China cooperation in future WTO, ongoing bilateral investment treaty (BIT), and future US-China Trade and Investment Agreement negotiations. In addition, participants voiced their hope that China and the United States would work together to reach a commercially meaningful agreement that expands the WTO's Information Technology Agreement as soon as possible.

II. Possible contents of a US-China trade and investment agreement negotiation

Participants agreed that reaching a comprehensive trade and investment agreement would be a long process, but underscored that both countries could benefit from interim agreements that would form the building blocks for an eventual US-China Trade and Investment Agreement.

Participants agreed that interim agreements should be explored in areas of common interest and where consensus can be most readily achieved.

Participants agreed that both sides have established a solid foundation through nine rounds of negotiations on a BIT. Participants agreed that the two governments should prioritize advancing BIT negotiations and called on them to make maximum efforts, building on the progress and commitments at the July 2013 US-China Strategic & Economic Dialogue (S&ED), to complete negotiations on a high-standard agreement on an accelerated basis. Participants agreed that reaching an agreement on a high-standard BIT would be an entry point for US-China Trade and Investment Agreement negotiations.

Participants also identified government procurement as another area of potential common interest that could serve as a building block for a US-China Trade and Investment Agreement as each country seeks increased ability to participate in large infrastructure projects of the other—including at the subfederal level via the states of the United States and the provinces and cities of China. Participants commended the research work under the Dialogue platform on two-way investment in the US and Chinese infrastructure markets and called for additional discussion and examination of the opportunities and challenges in two-way investment at the sixth meeting of the Dialogue in China next year.

More broadly, participants agreed that for a US-China Trade and Investment Agreement to be economically meaningful and politically viable, it would ultimately need to include strong disciplines that are enforced in a manner that liberalizes and facilitates trade and investment, and reduces market-distorting and discriminatory regulations in important areas, including investment, merchandise tariffs, agricultural trade, services, technical barriers to trade, intellectual property rights, and dispute settlement. US participants noted that additional priorities should include robust disciplines in the areas of competition policy and state-owned enterprises, government procurement, and other areas. Chinese participants noted that additional priorities should include liberalization of US export controls on high technology products, market economy status for China, increased transparency of US national security reviews of Chinese foreign direct investment transactions, and other areas.