China urges US to New airports to boost wrap up trade pact business aviation
Negotiators have already completed 24 rounds of talks
The man who tracks the wealth of China’s high-networth individuals believes the government’s plan to build scores of new airports in the next five years will boost China the and country’sthe businessUnited States aviation should sector. complete negotiations “It’s brillianton the news, bilateraland will investmenthelp growth treaty substantially,”before November’ssaid Rupert US Hoogewerf, presidential publisher election of to the prevent Hurun potential Report political featuring intervention,China and former global commercerich lists. minister Chen Deming “The said number onWednesday.of airports
in His China commentsis very limitedcame after compared the US Republicanwith countries presidential where private frontrunneraircraft ownership Donald is Trump high,” he pledgedsaid in toa telephoneimpose tariffs interviewon Chinesefrom Shanghai,products to where “level businessthe playing aviationfield”, even leaders though will this be would gatheringbe contrarynext monthto the for rules a of majorthe World conference.Trade Organization.
Speaking Hoogewerf at spokethe to annual China Boao Daily Forumtwo for weeks Asia agoin Boao, after Hainana draft province, document Chen for said the China country’sand the 13th US Five-Yearhave completed Plan (2016-20)text submitted negotiations to on the the national bilateral legislature, investment pledgedtreaty, to or buildBIT. Both more sides than are 50 now new exploring ways of further shrinking the so-called negative lists before moving on to talks on market access, he said.
A “negative list” specifies any bans or limits on foreign investment.
Businesses not on such a list are presumed to be unrestricted. This system has been adopted in China’s four pilot free trade zones in Shanghai, Tianjin, Guangdong and Fujian, which opened in the past two years.
But negotiators have yet to decide on the negative lists in the China-US talks.
civilianEager airportsto createby 2020.a fair investmentThe lack environmentof airports for has foreignlong been businesses,cited as a China factor has holding urged back theUS growthto exchangein business views on aircraftthe negative ownershiplists to in concludeChina. the talks.
Reuben Hoogewerf Jeffery,’s latest presidentlist of of the Rockefeller superrich, and releasedCo, said last the month, validation showed of that BIT Chinacan help has boththe largest Chinese numberand US of companies billionaires operatein the businessworld at in 568, each comparedother’s marketto 535 independentlyin the United States.in the long term, insteadBut theof looking number for of local business partners aircraftto form in jointthe countryventures. remainsThis would relativelybe fairly low, flexible around for 400 themat the to beginningcontrol their financial operations of 2015, show.
By comparison, there are about 15,000 owners of 17,000 business aircraft in the US, according to the Washington-based National Business Aviation Association.
The US also has the most airports — more than 19,000 at the end of 2014, a majority of them designated for civilian use. China has only a few hundred airports open to civilian use.
Hoogewerf noted there are other factors as well, affecting the pace of growth in China. and “One make is the investmentrules coveringdecisions. business aircraft operation.
US “If companiesyou register had onshore,invested you $77.5 have billionto pay ina 25 China percentby the tax. endIf youof register2015 and offshore,China had you’ve investedto follow $46.6a lot billionof complicatedin the US during rules theto operatesame period, the aircraftdata from within theMinistryChina,” heof Commercesaid. showed.
Bilateral “Another is trade that not reachedall billionaires $558.39 billionare cash-richlast year, at theup 0.6 moment percent because year-on-yearof the stock from market 2014. performance.”
“The Despite bilateralthat he investmentand others treaty are certainly optimistic can about provide the one of the best opportunities
figures to cut investment barriers and market increase potential. transparency level“We in are both confident countries thatand ensure businessa level aviation playing in field Asia amongand Chinaall companies,will continueas well to as grow, improving perhaps protectionsat a slowerfor Chinesepace, but and still US growing,” investors saidin each Charlie other’s Mularski, markets,” chairmansaid Meritof the Janow, Hong dean Kong-basedof the School Asian of Business Management Aviationand Public Association. Affairs at Columbia University.Most major players in the ChineseTalks on marketthe investment including treaty Airbus began SAS, in The 2008 Boeingas both Co, countries Gulfstream sought Aerospaceto increase Corp mutualand Embraer investment,SA, are equallywhich only optimistic. accounted for a tiny share “China of is one their of the overseas largest investment.growth markets They in havethe worldcompleted today, 24 both roundsfor airlinesof negotiations and businessby Januaryjets, and of Airbusthis year. sees it “Reinforcingas an important the market relationship for its corporate between jets Chinain the and comingthe US will years,”be moresaid David challenging Velupillai, and even marketingmore director important at now Airbusas the Corporate presidentialJets. election Growing campaign business createsin Chinaa tendencywill be high amongon the leaders agenda runningwhen delegatesfor office from to aroundblame US the economicworld meet problemsin Shanghaion otherfor the countries,”Asian Business said AviationYao Zhizhong, Conferencedeputy directorand Exhibition,of the Beijing-basedApril 12 through Institute 14.of WorldSome 40 Economicsaircraft will and be Politics on show at at the ABACE Chinese 2016. Academy of Social Sciences.
Business aviation in Asia and China will continue to grow ...”
A worker looks closely as containers are unloaded in Qingdao Port, Shandong province. China is eager to create a fair investment environment for foreign businesses.
Workers clean planes taking part in an industry expo at Shanghai’s Hongqiao Airport.