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U.S. Treasury Secretary Henry Paulson has urged the Chinese government to adopt a more flexible exchange rate as officials from both countries began two days of high-level trade talks in China. Speaking at the opening of the China-U.S. Strategic Economic Dialogue Wednesday, Paulson warned that protectionist measures would hurt efforts by both countries to work through trade frictions.
Concerns over China's huge trade surplus is rising in the United States and Paulson reiterated Washington's demand for a more flexible Chinese currency, arguing that flexibility was also in China's interest.
This year alone, dozens of China-related trade bills have been introduced in the U.S. Congress.
In her remarks, Chinese Vice Premier Wu Yi voiced concerns about the bills, and warned that if they moved forward they would severely harm U.S. business ties with China. Wu also stressed that China was not seeking a trade surplus with the U.S. and urged Washington to loosen its restrictions on exports.
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