China Makes a U.S. Deal, but It’s Not With Washington

TRADE ISSUES LINGER

From Five Days
The New York Times

The Bush administration is trying to head off a drive in Congress for trade sanctions against China, but it did not get much help from the Chinese this week.

Two days of meetings between delegations of cabinet members from China and the United States, aimed at opening Chinese markets to American goods and services, concluded with limited agreements on air routes, financial services and energy and environmental technology.

Little progress was made on American demands that China crack down on piracy of American products and let the value of its currency appreciate to make its exports more expensive.
Treasury Secretary Henry M. Paulson Jr. counseled patience, but on Capitol Hill patience seems to be running out. The trade deficit with China soared to $232 billion last year, and Congressional leaders of both parties are threatening to enact punishments if China does not move faster on trade issues.

The Chinese visitors said Americans should realize the value of their economic relationship, pointing to $32.6 billion in investments they have recently made in America, including a $3 billion nonvoting stake in the private equity firm Blackstone Group.

STEVEN R. WEISMAN