Advertisement

No China-U.S. currency deal

The most contentious issue goes unresolved during the final day of trade talks. Progress is reported in other areas.

May 24, 2007|From the Associated Press

WASHINGTON — The United States and China concluded high-level trade talks Wednesday with progress reported in a few areas but no breakthrough in the biggest dispute, China's currency.

Treasury Secretary Henry M. Paulson Jr. and Chinese Vice Premier Wu Yi sounded positive notes on the importance of the new high-level discussions.


Advertisement

But the scant signs of success left China's critics vowing to push ahead with legislation seeking to punish China for what are seen as unfair trading practices that have driven U.S. trade deficits to record levels and cost thousands of American manufacturing jobs.

Hoping to head off punitive legislation, Wu and other members of her team -- the largest high-level Chinese delegation ever to visit the U.S. -- met behind closed doors with congressional leaders after the talks with members of President Bush's Cabinet had concluded.

Wu, speaking through an interpreter, said her discussions with House Speaker Nancy Pelosi (D-San Francisco), Ways and Means Committee Chairman Charles B. Rangel (D-N.Y.) and other House leaders Wednesday were "very good," but she provided no details.

Rangel said the Chinese told the lawmakers that they needed more time to implement reforms such as overhauling their currency system. He said his committee planned to move forward with legislation. Some of the bills being considered would impose stiff penalties on Chinese imports for what critics say are unfair trade practices.

Paulson headed a U.S. team that included 18 Cabinet members and other top economic officials, Federal Reserve Chairman Ben S. Bernanke among them. Wu's team included 17 top Chinese government officials.

They were participating in the second round of Strategic Economic Dialogue talks after an initial session that was held in December in Beijing. The talks will take place twice a year and are designed to address economic tensions between the countries in light of a U.S. trade deficit with China that hit an all-time high of $232.5 billion last year.

Agriculture Secretary Mike Johanns said the U.S. raised the issue of food safety, which has been highlighted by such incidents as the deaths of pets that had eaten pet food made with tainted wheat gluten imported from China, and more meetings were planned.

The two countries agreed to more than double the number of daily passenger flights between the nations by 2012, going from 10 to 23.

Los Angeles Times Articles
|