"Paulson Will Press Beijing...But Reject China-Bashing"

The Wall Street Journal reports on a speech today by Treasury Secretary Paulson made ahead of a visit to China. According to the WSJ Paulson:

signaled he won't engage in China-bashing and will instead seek to persuade Americans that they stand to benefit from China's economic rise

... At Goldman Sachs, Mr. Paulson forged strong ties with many top Chinese officials, relationships he plans to draw on in his new role. It is clear that much of Mr. Paulson's tenure will be spent dealing with China, and he is already taking an increasingly visible role in shaping Bush administration international policy, particularly with respect to economic and trade issues.

The article suggests Paulson as being fairly conciliatory. It was somewhat interesting then to note how diferently the New York Times reported on the same speech. Their headline declares "Treasury Chief Delivers New Warning to China" and their article notes how he "used unusually forceful language in saying that China has kept the value of its currency artificially low relative to the dollar."

Hmm. Will have to go read the original speech (available via WSJ link).

Comments

Anonymous said…
NY times downplays Paulson’s premise that the economic health of the United States and China - indeed of the whole world - are interconnected and “highly interdependent.” “The biggest risk that WE [that is all of us] face is not that China will overtake the U.S., but that China won’t move ahead with reforms necessary to sustain growth…” Unlike those who interpret China’s rigid state imposed exchange rate as merely "unfair," and those like Chuck Schumer who have proposed legislation to impose tariffs on imports from China, Paulson recognizes that “a much more flexible, market-driven exchange rate along with more nimble, self-determined monetary policy are key ingredients to a stable and sustainable, non-inflationary growth.” Though an underestimation of their currency is “at China’s own peril,” their peril is our peril, their sustained growth is better for us all. Paulson's remarks are a warning to us all.
12:35 PM
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