US-China ‘Board of Investment’ stalls before expected Trump-Xi meeting
President of US-China Business Council says neither side has ‘initiated consultation process’ or is ready yet for private sector discussions
“The US side and the Chinese side neither have really initiated the consultation process,” he said, adding that “it looks like neither side is ready yet for discussions with the private sector”.
In an email response to the South China Morning Post, the Chinese embassy in Washington said that economic and trade teams of both countries are “maintaining close communication regarding the relevant mechanisms”.
“We believe that the trade and investment councils will provide a platform for pragmatic discussions between the two countries on mutual concerns in the areas of trade and investment,” embassy spokesman Liu Chang said.
He added that the boards would help shift economic and trade consultations from “crisis response” to “mechanised management”.
The US Treasury Department did not respond to a request for comment.
According to a White House fact sheet released after the summit, the Board of Investment aimed to provide a “government-to-government forum for discussing investment-related issues” while the Board of Trade focused on bilateral trade in non-sensitive sectors.
Negotiations fizzle out after ‘differing views’ on how to move forward
While the negotiations over the Board of Trade are making headway, both sides remain tight-lipped regarding the status of the investment board.
She attributed the delay to “differing views in the administration and Congress on the benefits and risks of more Chinese [foreign direct investment] FDI in the US”.
Overall, Chinese FDI into the US plummeted from US$55 billion in 2016 to just US$4 billion in 2025, according to data from the Rhodium Group, a research firm.
“I don’t think they are yet focused as much on the Board of Investment as they are on the Board of Trade and making sure the Board of Trade can very quickly deliver results for both countries,” Stein said.
With the investment arrangement remaining on the back burner, negotiations on the Board of Trade have intensified, with both sides racing to finalise non-sensitive sectors and products eligible for a tariff-free trade capped at US$30 billion each.
Last month, the Chinese embassy in Washington said agriculture and aviation were among the sectors selected for tariff-reduced trade, with the two governments setting a “guiding objective” of expanding two-way agricultural trade and agreeing “in principle” to include farm products in a framework for reciprocal tariff reductions.
Cutler stressed that even the Board of Trade is “making slow progress”, while questions remain over how both boards will function.
“On both the Board of Trade and Investment, we have yet to learn the chairs from each side, as well as their specific mandates.”
Although details remain scarce, the issue continues to feature in US readouts and official statements in the lead-up to Xi’s likely visit to Washington next month.
High hopes for economic deliverables, but little progress made
After the talks, Rubio said the discussions covered the implementation of newly established boards, with both sides working to operationalise them.
“I think that’s one of the potential concrete deliverables that we can have before September when that visit happens,” Rubio said.
However, Cutler said the level of diplomatic activity ahead of next month’s meeting was notably lower than previous leader-level summits.