US-China S&ED, CWG and SSD Key Outcomes
Cyber Working Group (CWG) and Strategic Security Dialogues (SSD)
U.S. and China held a candid, constructive and in-depth dialogue during their 1st CWG and SSD dialogues in Washington D.C. Both delegations agreed to take more practical measures to increase bilateral discussions to reach agreement on international cyber space governance norms and principles and to strengthen the cooperation and coordination between U.S and China Computer Emergency Response Teams (CERTs) in emergency situations. Further measures and areas of cooperation shall be addressed and discussed in future CWG meetings. Both delegations recognized the importance of the CWG as one of the main platforms to effectively and sustainably address strategic cyber issues for both countries. The next CWG shall be held prior to the end of 2013.
Bilateral Investment Treaty (BIT)
U.S. and China recognized that a Bilateral Investment Treaty (BIT) promoting investment openness, non-discrimination, and transparency would be of great importance to both countries. Both delegations applauded the progress made during the course of the BIT negotiations and have reaffirmed their shared commitment to enhancing openness, practicing fair and equitable treatment, and contributing to the reduction or elimination of discriminatory practices and market barriers. U.S. and China have held nine technical discussions on the BIT so far and China is becoming more open to holding formal and substantive BIT negotiations with its counterpart regarding this matter. The BIT will provide national preferential treatment and also help regulate investments.
SOE Software Legalization
China reaffirmed its commitment to the promotion, enforcement, management, and funding to foster the adoption of legal software by state owned enterprises (SOEs). China is requiring SOEs to purchase and implement legitimate software and has set up a software asset management system (SAM) to manage SOE adoption. U.S. and China have agreed to strengthen cooperation to address technical implementation issues in helping China's software legalization efforts.
Stakeholder Participation in Regulatory Process
China is set to establish a policy review mechanism led by the Ministry of Commerce (MOFCOM) that would permit U.S. Trade Representatives and the Department of Commerce to convey regulatory issues regarding specific policies that deviate from China's multilateral or bilateral commitments. MOFCOM is responsible for the investigation and corrections pertaining to inquiries made by its U.S. counterparts if deemed necessary.
WTO and Government Procurement
China shall submit a newly revised Government Procurement Offer to the WTO Government Procurement Committee by the end of 2013 in response to U.S. and other GPA parties' requests calling for lower procurement thresholds, increased coverage for sub-central entities, and improvement in other issue areas. Both the U.S. and China shall exchange a list of questions pertaining to each countries' procurement systems and GPA requirements, which will serve as the basis for future on-going technical discussions beginning this summer.
Foreign Investment Environment
China reaffirmed its commitments made during the 4th S&ED to promote the implementation of a more proactive strategy to welcome foreign investment. China is currently examining the most appropriate measures that can be adopted to open up service sectors and create a fair and accessible market environment for all types of enterprises regardless of origin.
Licensing and Certification Process Transparency
U.S. and China are committed to making all administrative licensing programs at the central and sub-central government levels legitimately based on applicable laws, regulations, and rules publicly available to stakeholders in a transparent manner.
For more information, please refer to the Department of Treasury and Department of State websites.
