Paulson Says China Talks Are Yielding Results
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U.S. Treasury Secretary Henry Paulson, rejecting claims in Congress that he’s too soft on China, said negotiations rather than sanctions have led to a faster appreciation of the yuan.
“We are getting results through this process that wouldn’t have been achieved without it,” Mr. Paulson told reporters as he traveled to China, where he arrived late yesterday. The Chinese currency’s “rate of appreciation has gone up materially over the past year,” he said.
Mr. Paulson returns to China with the U.S. Congress increasingly hostile toward America’s second-largest trading partner, which lawmakers claim keeps its currency weak to increase exports. At the same time, China’s leaders have failed to cool their economy, which grew at the fastest pace in 12 years last quarter, and rein in the record trade surplus.
