BEIJING - A Ministry of Commerce (MOC) spokesman said Friday that China has adopted a globally-recognized approach in conducting bilateral investment negotiations with the United States.

According to the ministry, China and the United States have agreed to start discussing of the China-US Bilateral Investment Treaty (BIT) as soon as possible on the basis of pre-establishment national treatment (PENT) with a "negative list" approach.

The agreement was reached at the fifth China-US Strategic and Economic Dialogue (S&ED) that concluded in Washington on Thursday.

MOC spokesman Shen Danyang said PENT means that foreign investors and their investments will be accorded national treatment in the pre-establishment phase of their businesses. "Negative list" refers to activities to which national treatment and most favored nation status do not apply.

Shen said more than 77 countries have adopted this approach in their investment talks.

The approach is in line with China's efforts to streamline administrative approval procedures and will help establish a level playing ground for market players, he said.

Shen said a mutually beneficial investment treaty is in the interest of investors from both sides, as two-way trade and investment have continued to expand.

China is ready to advance BIT negotiations with the United States in a positive and pragmatic way, he said.

China and the United States have conducted nine rounds of BIT negotiations so far.