Two newly nominated members of US President Barack Obama's economic team have ties to international business including in China, which could help strengthen bilateral relations, experts say.

In nominating Penny Pritzker as commerce secretary and Mike Froman to be US trade representative, Obama said on Thursday that his priority was jump-starting the country's trade agenda.

Pritzker is a Chicago billionaire who serves on the board of Hyatt Hotels Corp, which her family founded, and is a major donor to the Democratic Party. Froman, who will be Washington's top trade negotiator, currently serves in the White House as deputy national security adviser for international economic affairs.

"Both Froman and Pritzker are pragmatists who can drive a hard bargain but recognize the value of maintaining good working relationships with major business and economic partners," said Eswar Prasad, a Cornell University professor and former China desk chief at the International Monetary Fund.

"Mike Froman's engagement on China-related matters from his perch at the White House and Penny Pritzker's business background both portend well for a constructive economic engagement with China on economic and trade issues," Prasad said.

Obama, at a White House announcement attended by both nominees, said Pritzker and Froman will be tasked with carrying out his administration's initiative to increase US exports, mainly by negotiating two major trade-and-investment agreements - the Trans-Pacific Partnership, to which China hasn't been invited; and a pact with the European Union.

The nominations, which are subject to confirmation by the US Senate, were welcomed by business groups with an interest in promoting greater trade with China.

"If confirmed, it will be important for Pritzker and Froman to work with American businesses to prioritize the real challenges facing the US-China commercial relationship: addressing market-access restrictions, lowering bilateral investment barriers, improving intellectual-property-rights protection and leveling the playing field for American companies that do business with China," John Frisbie, president of the US-China Business Council, said in a statement.

"It is essential that the US government have leaders in place who understand the importance of trade, foreign direct investment, and strong commercial relations with China," said Frisbie, whose Washington-based organization represents some 200 American companies doing business in the world's second-biggest economy.

The Business Council last week released data showing that China in 2012 remained the No 3 destination for US exports, behind Canada and Mexico, with almost $109 billion in goods purchased. Although the pace of China's economic growth slowed last year, the value of US imports to the country increased 6.5 percent, or $6.6 billion, helping boost the American economy and create jobs, the USCBC said.

On Thursday, the Commerce Department reported that the US trade deficit narrowed 11 percent in March to $38.8 billion, including a $17.9 billion gap with China that was the lowest in three years. The reduction from February's $43.6 billion was due to a decline in imports from several countries, particularly China, and could help boost the US economic recovery as American companies earn more from exports while consumers spend less on imported goods.

Pritzker's success in the real estate, finance and hospitality industries has earned her credibility among fellow executives, and Obama on Thursday praised her as "one of our country's most distinguished business leaders".

Froman, known for skill in trade negotiations and knowledge of international commerce, was lauded by the president as "one of the world's foremost experts on our global economy".

Both are close associates of Obama and, if confirmed by the Senate, would be the first permanent heads of their respective agencies in months. John Bryson resigned as the Commerce Department's chief last summer after suffering a seizure that led to two car crashes in California. Ron Kirk resigned as US trade representative in March.

Pritzker is the daughter of a co-founder of Chicago-based Hyatt, a chain of hotels including some in China, now CEO of investment firm PSP Capital Partners and its real estate affiliate, Pritzker Realty Group. A net worth of $1.85 billion puts her 277th among the 400 wealthiest Americans, according to Forbes magazine, and No 825 in the world.

Pritzker was national finance chairwoman of Obama's 2008 presidential campaign but played a less prominent role in his re-election bid four years later, serving as co-chair. After the 2008 election, Pritzker was seen as a front-runner to be commerce secretary but withdrew from consideration, a move that news reports said was due to possible controversy over her wealth and business relationships.

American labor unions have criticized Pritzker and Hyatt Hotels for allegedly allowing worker-safety violations. Pritzker was called "an anti-labor, anti-worker kind of boss" by the Chicago teachers union during her tenure on the city school board, which ended in March.

Froman attended Harvard Law School with Obama, and since the administration began in 2009 he has been the president's top adviser on the global economy. He was the main White House negotiator in reaching trade agreements with South Korea, Colombia and Panama. His portfolio has also included Africa, energy, international finance and climate change.

One of Froman's major duties will be spearheading talks to establish both the US-EU Trans-Atlantic Trade and Investment Partnership and the Trans-Pacific Partnership, or TPP. Talks for the latter are aimed at transforming trade in the Asia-Pacific region, though without the participation of China.

The 11 countries, including the US, now negotiating the TPP have said they intend to conclude their talks this year. Their next round is scheduled for mid-May in Peru, when the parties are expected to consider Japan's request to join - a move the US has endorsed but that could complicate any possibility of Chinese involvement. Officials in Beijing have criticized the TPP, along with the US strategic rebalancing in the region (the "Asia pivot") as efforts to contain China economically and geopolitically.

Still, the US-China relationship would be well served by Obama's new appointments, Cornell's Prasad believes.

"The Obama administration has built an economic team that is likely to approach engagement with China and other international partners in a constructive and pragmatic manner, rather than being driven by short-term political or ideological considerations," he said.

In between government jobs - he served in the Treasury Department during Bill Clinton's presidency - Froman was an executive with Citigroup Inc, where he helped the financial giant's international insurance business explore expansion into China and other Asian markets.

Pritzker, as a board member at Hyatt Hotels, has a say in the chain's operations abroad. The company has operated hotels in China since the 1970s and in April announced plans for a 324-room Grand Hyatt hotel in Changsha, capital of central China's Hunan province, through a management agreement with Huayuan Property Co.

josephboris@chinadailyusa.com