Paulson: China needs to reform
June 5, 2007| By Nathaniel Ward
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Prompt Chinese adoption of free-enterprise reforms will benefit both China and the United States, Secretary of the Treasury Henry Paulson said today at The Heritage Foundation. By enacting fundamental changes and opening its economy to investors from abroad, including the United States, he explained, China would develop into a more balanced economy less dependent on exports. For example, opening Chinese capital markets to competition from top-tier American financial firms would benefit both nations’ economies. As Chinese firms grow more successful and gain political clout, he warned, they could push their government to enact counterproductive measures that restrict American firms’ access to their market. Not only that, but “Americans are impatient to see changes.” That makes it all the more important that America push for rapid reform through efforts like the semiannual Strategic Economic Dialogue. Unfortunately, he admitted, while they understand the importance of free enterprise, the Chinese Communists “are proponents of gradualism.” Paulson also took a moment to praise The Heritage Foundation. “I very much appreciate all you’re doing” to support free enterprise both at home and around the world, he said. Paulson’s speech, the 12th annual B.C. Lee Lecture, was covered by dozens of media outlets. Bloomberg television carried portions of his speech live. Nathaniel Ward is the Editor of MyHeritage.org—a website for members and supporters of The Heritage Foundation. |
