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🇰🇷 South Korea /Economy & Trade

U.S.-China Investment Committee Activation Uncertain Ahead of Summit

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • The U.S. and China agreed in May to establish an "Investment Committee" but its activation before the September summit remains uncertain.
  • Sources indicate neither side has begun substantive discussions, with the U.S. administration and Congress divided on risks of Chinese investment.
  • The delay in the Investment Committee means focus shifts to the Trade Committee, though progress there is also slow.

An "Investment Committee" agreed upon by the U.S. and China in May faces an uncertain future, with little evidence suggesting it will be a meaningful outcome of the leaders' upcoming September summit. Sean Stein, chairman of the American Chamber of Commerce in Shanghai, noted that neither the U.S. nor China has initiated substantive consultation procedures, and both appear unprepared for discussions with their private sectors.

There is no evidence yet that the Investment Committee will be a meaningful outcome of the next summit.

— Sean SteinChairman of the American Chamber of Commerce in Shanghai, commenting on the uncertain activation of the U.S.-China Investment Committee.

The committee was intended to be a government-level body for discussing investment-related issues, established alongside a "Trade Committee" focused on expanding non-sensitive trade during the May summit in Beijing. However, experts suggest that differing views within the U.S. administration and Congress regarding the risks of Chinese investment in the U.S. are hindering its launch. Wendy Cutler, vice president of the Asia Society Policy Institute, explained that U.S. policy on Chinese investment is still being formulated, with President Trump open to Chinese investors while other cabinet members and Congress remain more cautious.

Neither the U.S. nor China has begun substantive consultation procedures, and both appear unprepared for discussions with their private sectors.

— Sean SteinChairman of the American Chamber of Commerce in Shanghai, explaining the lack of progress on the Investment Committee.

Despite Trump's past remarks welcoming Chinese automakers to build U.S. factories, the administration has implemented measures to block such ventures, citing concerns over espionage, Chinese government subsidies, and unfair competition. Data from the Rhodium Group shows a significant decline in Chinese direct investment in the U.S., dropping from $55 billion in 2016 to an estimated $4 billion by 2025.

U.S. policy on Chinese investment is still being formulated. President Trump is open to Chinese investors, but other cabinet members and Congress are more cautious.

— Wendy CutlerVice president of the Asia Society Policy Institute, explaining the internal U.S. divisions on Chinese investment.

With the Investment Committee sidelined, both countries are reportedly concentrating on activating the Trade Committee, aiming for trade in non-sensitive sectors with a cap of $30 billion. While agriculture and aviation are mentioned as potential areas for tariff reductions, negotiations are progressing slowly. Despite discussions about both committees during a recent meeting between economic leaders, details on committee chairs and specific operational authorities remain undisclosed. Cutler observed that U.S.-China engagement across all levels is less active than before the September summit.

U.S.-China engagement across all levels is less active than before the September summit.

— Wendy CutlerVice president of the Asia Society Policy Institute, assessing the current state of bilateral relations.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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