'Conversations' with China focus on trade imbalance

'Conversations' with China focus on trade imbalance
'We believe lowering barriers is good for American consumers'

Lowering trade barriers is good for the United States, and Treasury Secretary Henry Paulson has been having "conversations" with China about the trade imbalance between the two nations, and what can be done about it, according to a White House spokesman.

The issue arose yesterday when Les Kinsolving, WND's correspondent at the White House, asked, "Are trade barriers something the White House would consider if China doesn't make currency and other adjustments to address the huge trade imbalance with the United States?"

"Secretary Paulson has been in China recently and having conversations with them," spokesman Scott Stanzel replied. "We have a very important relationship with China. And we believe that lowering trade barriers is the right approach. But I can't speak to any speculation on those fronts.

"But," he continued, "Certainly we believe that lowering trade barriers is good for American consumers, and it's also good for the American economy."

U.S. officials earlier confirmed they had made "progress" in their work to resolve trade disputes with China, but key obstacles remained.

Improving product safety, promoting tourism and protections for the environment were issues that had been dealt with, according to U.S. Trade Representative Susan Schwab.

But negotiations continued on other issues, including U.S. access to Chinese markets and whether China would allow its currency to rise in value, a move that would address the massive trade surplus it holds with the rest of the world.

"China realizes that this is an issue of international concern," she told the Associated Press.

Chinese officials have expressed reluctance to act so far, worrying that a rise in the Chinese currency would slow down the Chinese economy.

Government figures show that in the first 11 months of 2007, China's surplus with the rest of the world totaled more than $238 billion.

Paulson has admitted that the arguments for trade barriers to protect the U.S. economy already have been started.

In a second question, Kinsolving asked: "The New York Daily News, FOX News and AP all report that 10 associates of the Rev. Al Sharpton have been subpoenaed by a federal grand jury and ordered to provide financial records of his 2004 presidential campaign, as well as six Sharpton-related businesses. And my question: Without asking you for any pre-trial comment, could you, as spokesman for the nation's chief law enforcer, tell us the White House reaction to Mr. Sharpton's stated suggestion that this is U.S. government retaliation for its leading a march in connection with the Jena 6?"

"That is a matter for law enforcement officials, Les, and I'll just leave it at that. I don't have anything for you on that," Stanzel said.