Beijing - US Treasury Secretary Henry Paulson on Thursday
urged China to speed up the opening of its financial services
markets, saying the move would benefit both China and the
international business community.
'Increasing the pace of reform in your financial services markets
is in the best interest of China's future,' Paulson said in a speech
to local business leaders at the Shanghai Futures Exchange.
Faster opening of the markets would allow China to 'spread
prosperity to all the people of your nation, to promote greater
stability here and abroad and to demonstrate leadership in accordance
with your global economic presence,' he said, according to an advance
copy of the speech released by the US Treasury Department.
Developing financial markets would move China 'toward its goals of
more balanced, harmonious, innovation-based and environmentally
sustainable growth,' according to Paulson.
The overreliance on low-cost manufactured goods in the Chinese
economy 'has the potential to cause problems in the future,' Paulson
added.
'Your long-term economic strength requires a diverse economy with
high value-added manufacturing and world-class services, including
financial services,' said the former chairman and chief executive
officer of the Goldman Sachs investment bank.
'Time is of the essence,' Paulson said. 'One lesson I have learned
over the years is that although perhaps not as easy politically, it
is better to implement reforms during periods of economic strength.
'The risks for China are greater in moving too slowly than in
moving too quickly toward transparent, liquid, stable capital markets.
'The longer China waits, the more difficult it will be to create
robust capital markets and reach your goal of more balanced,
harmonious and innovation-based growth.'
Paulson held talks with Chinese officials on Wednesday with
China's growing trade surplus and US pressure for China to float its
currency among the key topics.
China's large trade surplus has caused tensions with the United
States and Europe, where critics said its renminbi currency remains
undervalued and makes Chinese exports cheaper.
The US trade deficit with China reached 233 billion dollars in
2006, 28 per cent of the total US trade deficit, according to US
figures.
The Chinese government has allowed its currency to appreciate by
about 5 per cent against the dollar over the last 18 months, and it
was expected to rise by a similar margin this year.
© 2007 dpa - Deutsche Presse-Agentur 
USA
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