Paulson enlists Bernanke on China trade talkTreasury secretary, Fed chair to focus on deficit, currency, piracy in Beijing.NEW YORK (CNNMoney.com) -- Treasury Secretary Henry Paulson will travel to China with Federal Reserve chairman Ben S. Bernanke and other cabinet members in mid-December to make the case for economic policy changes, according to a report in The New York Times. China's export-based economy is closed to most outside investment, while its weak currency makes its exports more attractive on the international market, the Times said. In addition, its record of lax law enforcement regarding piracy and other intellectual property theft have been a source of concern for the administration and Congress.
Although U.S. Treasury secretaries and Federal Reserve chairmen have met with their Chinese counterparts before, Bernanke's inclusion in the upcoming meeting is meant to send a signal of the seriousness of the issues, the Times reported. Bernanke is expected to make the point that the United States' reliance on China as a buyer of its debt is not sustainable, a position he and other central bankers have taken before. Paulson, who as the former CEO of investment firm Goldman Sachs (Charts) has a lot of experience working with China, is under pressure from the White House to get results. The Democrats, who won back control of Congress this month, are seen as likely to promote tough trade legislation aimed at China, and the administration is looking for tangible changes on the issue. Many U.S. retailers such at Wal-Mart (Charts), Target (Charts) and Costco (Charts) sell products made in China at prices American manufacturers can't match. -------------------------------------------------------------------------- Black Friday cage match: Wal-Mart vs. everyone The stock market is irrational - so what? Most profitable ideas for 2007: Real estate, stocks, more... |
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