Treasury Secretary Paulson gets 'open dialogue' with China.(Brief article)

The United States and China announced an opening of dialogue between the two countries on a ranging number of economical issues, most notably the Yuan, China's official currency. Treasury Secretary Henry Paulson has come under enormous pressure from U.S. manufacturers and Congress, as well, to increase the value of the Yuan. Manufacturers say the extremely low value allows China's goods to be priced unfairly and inexpensively on the global market, effectively hurting U.S. competition.

Without a significant upgrade in the Yuan's worth, Congress has made overtures to implement punitive tariffs on Chinese exports. This has led many to believe China's concession of open dialogue to be nothing more than a consolation prize meant to bide time. Paulson has been downplaying the currency issue, however, looking instead for an augmenting trade relationship between the U.S. and China, and emphasizing American prosperity as a key to China's rise.

Lawmakers in Congress see the prospect of punitive tariffs as very attractive, despite the administration's ...