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US Trade Representative Michael Froman said Tuesday that substantial progress has been made on the bilateral investment treaty (BIT) between China and the United States, but there is "substantial distance" to go in reaching an agreement during Chinese President Xi's Jinping's visit.

Froman, President Barack Obama's principal adviser and negotiator on international trade and investment, said Xi's visit to Washington later this week will provide an "opportunity to discuss many positions". "This is an important moment for China-US relations, but even more important moment for China’s economic transition," he said.

Froman made his remarks at the Asian Architecture Conference hosted by the Center for Strategic and International Studies.

On trade between the US and China, Froman said he sees real opportunities to expand exports to China by removing tariffs on manufactured products. He said he has had strategic discussions with Chinese counterparts in agriculture that will help boost trade between the world's two biggest economies.

Froman said China's focus on trade will change in near future as the demand for bulk commodities in the country has declined.

He said the US has been encouraging China to accelerate market-based reforms and greater openness to trade and investments.

Bernard Bailey, chairman and CEO Authentix, which provides brand protection and supply chain security solutions for various industries, said that his Addison, Texas-based company has operations and business in Shanghai.

"My company has grown rapidly in China and is tremendously welcomed by the Chinese government to boost bilateral trade," Bailey said. "And I hope the bilateral trade and investment agreement, if signed shortly, will boost the business of our company."

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