Paulson Urges Restraint in Policy on China Trade

US Treasury Secretary Henry Paulson warned that any legislation aimed at punishing China could aggravate jittery markets and increase volatility. “Unilateral actions aimed at another nation” – especially a nation that continues to fund hefty portions of US debt – could disrupt the global economy, he warns. Increasing numbers of US firms report logging more revenue from overseas sales than those in the US. US industries – including automobiles and financial services – hope increasing exports to China will help them through the current economic turbulence. Some US legislators insist that any currency manipulation by China can’t go unpunished, but many economists question how much the Chinese controls really contribute to US economic troubles. Paulson urges Americans not to fear China’s economic success, adding that punishing China won’t solve all US problems and that pursuing protectionist laws will hurt all global traders, not just the Chinese. – YaleGlobal