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China Deals on Finance, Skips Currency

US-China talks bring good news for securities firms, but no yuan reform

By J. Kelman,  Newser User

Posted May 23, 2007 4:59 PM CDT
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(Newser) – Talks between American and Chinese economic officials thudded to a close today, offering mild changes to the financial sector in lieu of major currency reform. The deal hammered out by Treasury Secretary Hank Paulson and China's vice-premier Wu Yi promise foreign financial companies more access to Chinese markets and allows American investors to purchase larger amounts of Chinese stock.

But the elephant in the room was currency reform. Congress has threatened sanctions against China if it doesn't take steps to revalue the yuan. Although the governor of China's central bank promised today that the country will loosen the yuan's value, Paulson said they're not moving fast enough. "We're impatient," he added.

Treasury Secretary Henry Paulson, center, holds a press availability with fellow White House Cabinet members at the U.S.- China Strategic Economic Dialogue in Washington, Wednesday, May 23, 2007. From left are, Energy Secretary Sam Bodman; U.S. Trade Representative Susan Schwab; Housing and Urban Development Secretary Alphonso Jackson;...
Treasury Secretary Henry Paulson, center, holds a press availability with fellow White House Cabinet members at the U.S.- China Strategic Economic Dialogue in Washington, Wednesday, May 23, 2007. From...   (Associated Press)
Chinese Vice Premier Wu Yi speaks during a joint statement with Treasury Secretary Henry Paulson, not shown, Wednesday, May 23, 2007, at the U.S.- China Strategic Economic Dialogue in Washington. (AP Photo/Gerald Herbert)
Chinese Vice Premier Wu Yi speaks during a joint statement with Treasury Secretary Henry Paulson, not shown, Wednesday, May 23, 2007, at the U.S.- China Strategic Economic Dialogue in Washington. (AP...   (Associated Press)
Chinese Vice Premier Wu Yi, left, listens as Treasury Secretary Henry Paulson speaks during their joint statement at the U.S.- China Strategic Economic Dialogue in Washington, Wednesday, May 23, 2007. (AP Photo/Gerald Herbert)
Chinese Vice Premier Wu Yi, left, listens as Treasury Secretary Henry Paulson speaks during their joint statement at the U.S.- China Strategic Economic Dialogue in Washington, Wednesday, May 23, 2007....   (Associated Press)
Chinese Vice Premier Wu Yi, left, poses for a group photo with Treasury Secretary Henry Paulson, right, at the U.S.-China Strategic Economic Dialogue in Washington, Wednesday, May 23, 2007. (AP Photo/Gerald Herbert)
Chinese Vice Premier Wu Yi, left, poses for a group photo with Treasury Secretary Henry Paulson, right, at the U.S.-China Strategic Economic Dialogue in Washington, Wednesday, May 23, 2007. (AP Photo/Gerald...   (Associated Press)
Treasury Secretary Henry Paulson speaks at the U.S. China Strategic Economic Dialogue in Washington,Tuesday, May 22, 2007. (AP Photo/Gerald Herbert)
Treasury Secretary Henry Paulson speaks at the U.S. China Strategic Economic Dialogue in Washington,Tuesday, May 22, 2007. (AP Photo/Gerald Herbert)   (Associated Press)
Chinese Vice Premier Wu Yi , left, and Treasury Secretary Henry Paulson leave the podiums after delivering a joint statement during the U.S.- China Strategic Economic Dialogue in Washington, Wednesday, May 23, 2007. (AP Photo/Gerald Herbert)
Chinese Vice Premier Wu Yi , left, and Treasury Secretary Henry Paulson leave the podiums after delivering a joint statement during the U.S.- China Strategic Economic Dialogue in Washington, Wednesday,...   (Associated Press)
Chinese Vice Premier Wu Yi , right, shakes hands with Treasury Secretary Henry Paulson at the U.S.-China Strategic Economic Dialogue in Washington,Tuesday, May 22, 2007. (AP Photo/Gerald Herbert)
Chinese Vice Premier Wu Yi , right, shakes hands with Treasury Secretary Henry Paulson at the U.S.-China Strategic Economic Dialogue in Washington,Tuesday, May 22, 2007. (AP Photo/Gerald Herbert)   (Associated Press)
Treasury Secretary Henry Paulson, at podium, holds a press availability with fellow White House Cabinet members during the U.S.- China Strategic Economic Dialogue in Washington, Wednesday, May 23, 2007. From left are, Labor Secretary Elaine Chao; Paulson; Commerce Secretary Carlos Gutierrez; Health and Human Services Secretary Michael Leavitt...
Treasury Secretary Henry Paulson, at podium, holds a press availability with fellow White House Cabinet members during the U.S.- China Strategic Economic Dialogue in Washington, Wednesday, May 23, 2007....   (Associated Press)
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Currency reform won't close trade gap
Investors Business Daily

More agreements reached today
SmartMoney

 
China • currency • Henry Paulson • Wu Yi • finance • reform • stock • yuan • US economy

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