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Sealing investment deal ‘within reach’ at Trump-Xi talks

Analysts say concluding discussions on such an accord would support US leader’s job promises

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Donald Trump’s promise to create US jobs may bode well for his summit with Xi Jinping. Photo: Bloomberg

One accomplishment of a ­summit between US President Donald Trump and his Chinese counterpart Xi Jinping could be a road map for a bilateral investment treaty, business ­analysts in the United States say.

They believe there is a favourable environment for both sides to conclude the discussion on such a deal, which started nine years ago and entered substantial negotiations in 2013, because it would support one of the few Trump campaign pledges that has survived into his presidency – more American jobs.

“They both could agree over the next six to 12 months to ­produce an agreement that would increase American access to China and encourage Chinese ­investment in the US that would generate jobs,” said Dr David Lampton at the Paul H. Nitze School of ­Advanced International Studies at Johns Hopkins University in Washington.

Moreover, now that Trump has backed off pledges to brand China a currency manipulator, and with no recent reiteration of threats to erect a 20 per cent tariff wall, the path to a positive meeting of the two presidents is clearer.

Given that Trump had shown a preference for bilateral agreements over multilateral ones, “they could rekindle something like the bilateral investment treaty [initiated under the administration of former US president Barack Obama]”, Lampton said.

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