Investment treaty with US offers risks and rewards

With China and the United States having made progress on the Bilateral Investment Treaty negotiations, investors from both sides are taking a second look at the risks and opportunities that the pact will bring in.

"After nine rounds of BIT negotiations, the two sides have reached some agreements, such as offering most-favored-nation treatment, eliminating market barriers and settling investment disputes," said Cai Congyan, professor of international law at the Xiamen University School of Law, during the second US-China Business and Legal Forum on Wednesday.

Once the BIT is signed, US companies and investors will enjoy a broader market with fair competition in China, while Chinese companies - especially State-owned ones - will be forced to compete openly without protection from the government.