Economy

Chinese money 'welcomed'

By Zhang Jin (China Daily)
Updated: 2010-11-05 16:07

Anshan Iron and Steel Group at an exhibition in Shanghai. The company's proposal to establish a joint venture with an American steel mill faced opposition from some US congressmen in July. [Photo / China Daily]

BEIJING - A US official has called for further negotiation between China and the United States to facilitate two-way investment as economic tension runs high between the world's two largest economies.

"China and the US need to get to know each other better and keep talking to each other. It is really important," William Zarit, minister-counselor for commercial affairs of the US embassy in China, told China Daily in Beijing.

"We can further cooperate in the fields of climate, new energy, clean energy and coal. There are so many opportunities we have.

"It is not accurate to say there are a lot of trade barriers in the US. The US warmly welcomes Chinese investment.

"And only very few cases, which are not appropriate, are rejected. But in most cases, the Chinese companies that want to invest in US are fine."

His comments came after Chen Jian, a Chinese vice-minister of commerce, urged the US on Monday to improve its investment environment and reduce barriers.

"We expect the US could improve the investment environment to attract more investment from China, and to strengthen China-US economic relations," Chen said at a news briefing.

"We cannot find any real or obvious rules or regulations by the US government and governments from the European Union on restricting Chinese investment, but we sometimes experience unfair treatment, or say, investment protectionism."

So far, China has invested more than $900 million in the US non-financial sector. From January to September, US investments in China amounted to $2.73 billion.

The majority of China's investment in the US was conducted during the past two years.

China has been recently accusing the US of trying to block some deals.

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In July, some US congressmen urged the Obama administration to turn down a proposal by Anshan Iron and Steel Group to establish a joint venture with an American steel mill.

"As for the energy or mineral industry, if the State-owned enterprises want to invest in US, the US government will doubt whether they are supported by the Chinese government, which constitutes another difficulty for the Chinese companies investing in US in these areas," said Warren Clark, a partner of Deloitte.

The US business circle earlier this year said China's investment environment is declining.

In July, General Electric's Chief Executive Jeffrey Immelt, reportedly criticized the Chinese government for being increasingly hostile toward multinationals.

"It is quite normal that there are trade and investment barriers between the world's two largest economies," Clark said.

"But if the Chinese companies get more experienced in investing in US and the US is more accustomed to the Chinese investment, the investment environment will improve."

Hu Haiyan contributed to this story.