In the news: U.S.-China BIT talks continue, Dongguan's labor market suffers and Nestle rides the e-commerce boom

U.S.-China treaty talks

Officials from the U.S. and China are meeting next week to discuss the bilateral investment treaty (BIT), with a key item on the agenda being the negative list, which indicates the sectors that are off limits. The U.S. wants a greatly shortened list as well as clarity on China's foreign-exchange policies and cybersecurity regulations. PRC Vice Minister of Commerce Zhang Xiangchen said to reporters that cybersecurity concerns go both ways. The Committee on Foreign Investment in the United States (CFIUS) “does not issue advisory opinions as to whether a transaction might raise national security concerns or be considered a covered transaction subject to review,” according to its website, and takes a just as discretionary approach as China. The BIT negative list under discussion should be a two-way deal, and setting official investment limits would help reduce uncertainties in U.S.-China M&A. It'd be interesting to see how a clearer regulatory landscape affects the rates of premium bids and reverse breakup fees.   

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