In this podcast, Carnegie–Tsinghua’s Paul Haenle continued his conversation on China’s regional trade and investment agenda with former U.S. Trade Representative Tim Stratford. Stratford began by explaining the dual purposes behind the Chinese government’s establishment of the Shanghai Free Trade Zone (FTZ) in August 2013. He said the zone was seen a means to create a competitive reform dynamic within the country, and an opportunity to experiment with the liberalizations needed to eventually conclude a Bilateral Investment Treaty (BIT) with the United States and join the Trans-Pacific Partnership Agreement. The Shanghai FTZ’s negative list, for example, is also a necessity for the U.S.-China BIT. Stratford said that although the Shanghai FTZ’s initial negative list has been criticized for its length, its implementation alone should be seen as highly significant. He added that the degree to which the zone’s list is shortened in the future would serve as one measure of the depth and speed of China’s broader liberalization plans.

Stratford called the U.S.-China BIT the greatest opportunity for American companies to address concerns about doing business in China since the country joined the World Trade Organization in 2001. He urged American executives to take care to understand the treaty’s full breadth and inform negotiators of the challenges their industries face. Stratford said that depending on the level of ambition of the Chinese government, treaty negotiations could be concluded in the next two to five years.

Tim Stratford

Tim Stratford is the managing partner of the Beijing office of Covington & Burling LLP, where he focuses on advising international clients doing business in China and assisting Chinese companies seeking to expand their businesses globally. Stratford was previously the assistant U.S. trade representative responsible for developing and implementing U.S. trade policy toward Mainland China, Taiwan, Hong Kong, Macao, and Mongolia. Prior to his work at the office of the United States Trade Representative, Stratford worked in China for more than 25 years, including serving as General Counsel for General Motors’ China operations, as Minister-Counselor for Commercial Affairs at the U.S. Embassy in Beijing, and as Chairman of the American Chamber of Commerce China.

Paul Haenle

Paul Haenle is the director of the Carnegie–Tsinghua Center. Prior to joining Carnegie, he served from June 2007 to June 2009 as the director for China, Taiwan, and Mongolian Affairs on the National Security Council staffs of former president George W. Bush and President Barack Obama.