Negotiations over a US-China Bilateral Investment Treaty (BIT) have entered a new phase with China’s formal submission of its negative list on June 12 and the upcoming September summit between President Xi and President Obama.  The BIT will be a focus of the annual Strategic and Economic Dialogue (S&ED) between China and the United States in Washington next week.  The key to answering “why China wants a BIT” is to understand what China would gain from such a treaty with the United States.  While the United States stands to gain more access and protections for its companies in China’s restricted market, , China has seemingly less incentive to grant the United States more market access and protection, as it may get relatively little in return from the already more open US investment environment.  However, there are still important reasons why China would want to reach a deal.