Fiscal cliff looms large over Sino-US trade talks (2)

Shen Danyang, a spokesman for the Ministry of Commerce, said at a news briefing on Tuesday that despite the fast growth of Chinese investments in the US, some investors faced obstacles such as national security investigations.

"We constantly oppose the so-called 'national security' moves to block Chinese investments because it's obvious discrimination," Shen said.

"We hope that the US will judge Chinese investments fairly, avoid politicizing the issue and ensure transparency. The two-way investment pact should also be advanced to boost the confidence of Chinese investors," he said.

The first 11 months saw Chinese non-financial investment in the US total $1.1 billion, up 13 percent from a year earlier, according to the ministry.

China's non-financial outbound investment in the US registered $1.81 billion in 2011, up 38.5 percent year-on-year.

"In addition to Chinese investments in the US, China will also expect the US to take effective measures in export controls, trade cases against China and intellectual property protection," Shen said.

He Weiwen, co-director of the China-US-EU Study Center at the China Association of International Trade, said that the talks will help the US better understand China's signals on continuing reforms and opening-up, as well as welcoming US investment.

During a trip to southern Guangdong last week, Party chief Xi Jinping echoed calls made by late leader Deng Xiaoping on market reforms and strengthening the rule of law.

Huo Jianguo, president of the Chinese Academy of International Trade and Economic Cooperation under the Ministry of Commerce, said that this year's talks will play a key role in ties. "Easing obstacles to Chinese investment in the US will be an important issue in this year's talks,'' Huo said.

"It will enhance trust and create a positive atmosphere for cooperation," Huo said.

"The key for Sino-US economic ties is long-term strategic trust."

Derek Scissors, a senior research fellow at the Heritage Foundation in Washington, told Reuters that "we're either going to get nothing, meaning just details, or we might get a change".

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