Friday, December 14, 2007

U.S.-China Talks Build Trust, but No Major Deals

Sitting next to each other after dinner this week and watching an acrobatics show, U.S. Treasury Secretary Henry M. Paulson Jr. and Chinese Vice Premier Wu Yi were chatting casually when the conversation turned to lawsuits.

Paulson said Wu told him: "In China, we don't sue each other. So if someone sued someone, that would be a really unfriendly act -- highly hostile." She said she had been talking to U.S. officials earlier in the day who told her that in their system, "you resolve things in the courts. This is normal."

The government leaders weren't talking specifically about the four World Trade Organization complaints that the U.S. government has filed against China over government subsidies for steel tubes, woven sacks and other products. But the context was clear.

In an interview Thursday after two days of talks with Chinese officials on economic issues, Paulson said his chat with Wu was an example of how the U.S.-China relationship has grown in the year since he and Wu began the twice-a-year cabinet-level meetings.

"I think there's much more communicating, listening, understanding and building a trust level that makes it easier to deal with the issues that are the most politically charged," Paulson said.

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