National Treatment principle as one of the most single vital principles and standards of treatment in international investment agreements is characterized by non-discriminatory treatment, legal protection and equality treatment amongst nationals and foreign investors and is usually treated as a separate article in most trade and investment agreements.The Peoples Republic of China and the United States as the world two largest economies have not executed any investment treaty that would guarantee National Treatment for both countries investors considering the　　gradual increase of investment activities in respective countries.International Investment Agreements have significantly promoted global investment with dramatic increase resulting into　　widespread of economic growth, legal protection, non-discriminatory treatment, cementing bilateral cooperation and investment inflows with development of efficient trade activities that have upsurge and enhanced cross-border trade and Foreign Direct Investment.China and the United States not being exceptional to this global investment spree, initiated a Bilateral　　Investment Treaty (BIT) negotiation since 2008 to foster investment through the practice of National Treatment and creating a vibrant market access, trade and investment liberalization and　　promotion of economic integration between the two countries, Asia and the world at large.　　The research epitomizes and unequivocally emphasizes application of National Treatment to investors from both countries embracing potential economic growth and development, cementing US-China bilateral relations and the minimization of discriminatory treatment of investors from either country in the wake of promoting Foreign Direct Investment between the two world largest economies.　　However, the both countries are working out modalities to compromise their Negative lists in order to execute the BIT in the near future to assure each other the fullest implementation of　　National Treatment.The study takes into account the impact of National Treatment and its application to the two States if the Bilateral Investment Treaty is executed in the near future.