The Bilateral Investment Treaty (BIT) between China and US is a significant opportunity to further drive reforms within China's investment regime to the benefits of the domestic economy, and help China achieve its own social and economic goals, said the American Chamber of Commerce in China.

An effective and successful BIT would result in increased US investment into China, leading to higher value products and lower prices for consumers, according to a report released on Friday by the American Chamber of Commerce in China with support from the US Chamber of Commerce.

It will also lead to introduction of valuable managerial and technical expertise into China, said the report titled China's Investment Environment: Overcoming Impediments to the US-China BIT.

Similarly, it would also boost the confidence of Chinese investors in the US and support the growth of China's outbound foreign investment, brining job creation and other economic benefits to the US, it said.

According to the report, Chinese investment in the US continues to increase, having in recent years surpassed US investment into China.

FDI remains an important component of the US economy, and its open environment has allowed Chinese investors to find great success in the US, it said.

The report also acknowledges the complexity of the reforms process and initial enthusiasm for early developments, including the pilot free trade zones and draft Foreign Investment Law. It also urges China to further implement more ambitious economic reforms or risks that might delay the BIT.

"The direction of China's reforms are necessary to attract and retain foreign investment," said AmCham China Chairman James Zimmerman.

"This is especially important given the progress of global trade agreements such as the Trans-Pacific Partnership, which raises the global standards for bilateral trade and investment protections even higher."

According to Zimmerman, American business in China already represents billions of dollars of investment, employs hundreds of thousands of employees, brings to the market advanced technology and innovative products and services. The report also welcomes and encourages China's accession as soon as China is ready to meet the TPP obligation.