Impact on China

"China follows the progress of the TPP, is not currently in talks but does not exclude eventual membership. It is a prudent approach," said Steinbock, adding that the pact became "less open and less inclusive" since the US joined it in 2010.

"Since the talks have been clouded in secrecy, it is hard to say because the pros and cons of the TPP membership depend on the final agreement," Steinbock said.

Lavin, who founded Export Now, an online platform that helps US businesses to sell through e-commerce to China, said the main impact on China - if it joined - would be that it gains greater access to foreign markets.

"An additional impact is that China would have to allow its market to be more open and it would have to reduce or eliminate its subsidies to State-owned enterprises, so that they would fairly complete in the marketplace," Lavin said.

CFR's Robert Kahn said the process for China to join will be "tough" because there are challenges to get some agreements done.

"I think there is still hope to get the TPP agreement in 2014 but to get there you will probably need to have some real concessions made for the US," said Kahn.

Kahn said even trade and investment talks such as the TPP and BIT will take some time, the two countries' intention to continue to engage in the these negotiations will still be a "very positive" sign to the market and investors from both sides.

"When you are making an investment decision and if you knew this was the direction things were going you will feel a lot more comfortable," Kahn noted.

"The US economy is probably going to be one of the better-performing economies this year (compared to Europe and the emerging markets) because there is more stability in the US in the sense that monetary policy is on a more predictable path", said Kahn.

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