Henry Paulson is hopeful of a US-China trade deal soon, but both sides have to work hard to make further progress on their ties
- Former US Treasury secretary is in Beijing as co-chair of second New Economy Forum, at which executives, government leaders and others discuss global issues
- Paulson says even though he is optimistic of a ‘phase one’ US-China trade deal, issues will remain around structural impediments, SOEs and technology
The US and China will have to work hard on their relations even after they reach a trade deal, as some “structural impediments will remain”, according to former US Treasury secretary Henry Paulson.
“Last year I warned of pressures to decouple in four areas, goods, capital, people and technology, resulting in an economic iron curtain. I’m sad to say that over the past year, pressures to decouple have increased in all four areas, particularly in technology and financial markets,” Paulson, who served during the George W. Bush administration, told the South China Morning Post.
“I am hopeful that before too long both sides will be completing phase one of a US-China trade agreement. But even when this is done, it won’t be the end of the story, as issues will remain around structural impediments, SOEs [state-owned enterprises] and technology to name a few.
“But it would be the first trade deal between the US and China in nearly 20 years. And it is long overdue,” said Paulson.
“Further progress in US-China relations will have to be hard fought and hard won.”