US Treasury Secretary Henry Paulson pinned hopes on upcoming
visit to Washington by Vice Premier Wu Yi to achieve agreements on trade and
economic integration, billing the top Chinese woman trouble-shooter
as a "force of nature".
As a result of increasing American consumption of inexpensive
but quality Chinese goods, the two governments are more or less
getting locked in horns over an enlarging trade imbalance. Some in
the Bush administration and at the US Capitol Hill believe that
China's currency is undervalued against the US dollar, although the
yuan has risen more than 5 percent in the past 18 months.
Secretary Paulson, speaking at a forum of top economists,
scholars and government officials in Washington on Thursday, said
he was looking for "signposts" of short-term progress during the
second round of China-US Strategic Economic Dialogue, scheduled to
open on May 23 in Washington. Paulson will head the US team;
Chinese delegation will be led by Wu.
Madame Wu Yi is well-known in China and abroad for her toughness
and efficiency in getting jobs done. Wu made a name in 2003 when
she spearheaded China's efforts to stop the merciless assault of
the Severe Acute Respiratory Syndrome (SARS), and is now entrusted
by Beijing Central Government to fight IPR violation in China.
During the previous Chinese government led by Premier Zhu Rongji,
Wu led the efforts to curb then rampant smugglings.
Paulson said that private discussions that visiting Chinese
officials plan with members of Congress will help both sides
understand each other better.
"Now I happen to think it is a big positive that the Chinese
would be here when Congress is in full session because they will
have an opportunity -- Wu Yi is a very persuasive woman and she is
a force of nature -- to go up and behind closed doors and talk with
some of the key committees and leaders out there," Paulson told the
forum.
The secretary did not make any predictions that China would
accelerate its pace of currency reform, which US manufacturers see
as critical for trimming the huge US trade deficit with China.
"We are focused on long-term goals while simultaneously looking
for short-term results," Paulson said. He said he would look for
short-term achievements as "signposts along the way" that the new
high-level talks are working.
China has already achieved a benefit, Paulson said, with the US
now favoring China's membership in the Washington-based
Inter-American Development Bank, which supports development
projects in Latin America.
He said that other areas of discussion include an agreement that
would increase commercial airline flights between the US and China,
and efforts to improve environmental protections in China through
such projects as developing cleaner-burning coal-fired electric
generating plants.
In an effort to demonstrate that current US laws can deal with
China, Bush administration in recent weeks has filed two trade
cases against China with the World Trade Organization and for the
first time imposed penalty tariffs on Chinese paper products in a
dispute over alleged government subsidies.
The Chinese delegation is also expected to meet with President
Bush.
Paulson said although he detected growing concerns among US
lawmakers during meetings with them on the Chinese currency
problem, "people are still open minded" about the importance of
"making progress through negotiations."
In his speech to the forum, Paulson warned against American
protectionism.
"I am a very strong believer that trade benefits us greatly and
isolation and protectionism?are going to hurt our standards of
living and hurt people at all income levels, particularly the
average workers," Paulson said.
(China Daily May 3, 2007)
