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
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)
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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.