WASHINGTON (TIP): The United States on July 11 said China agreed to drop certain exceptions before restarting negotiations on a bilateral investment treaty between the two countries. The move is an encouraging sign that the world’s second largest economy is willing to open up more sectors to foreign competition, a US treasury official told reporters on the sidelines of USChina economic talks in Washington.

China also plans to establish a Shanghai Free Trade Zone pilot program and permit foreign firms to compete in certain services sectors, including e-commerce, the official said, speaking on condition of anonymity. The United States also expects to see more progress on China’s move towards a freelyfloating exchange rate in coming weeks, the official said.