From BusinessWeek:
While trying to thread a political needle through U.S.-China policy, Treasury Secretary Henry Paulson may have ended up pricking himself”and strengthened the hand of China’s critics in Congress. Instead of calming China’s detractors on Capitol Hill, Paulson’s Dec. 19 conclusion that China isn’t manipulating its currency is likely to prompt a new round of congressional hearings and a spate of tough legislative initiatives from newly empowered Democrats and anti-China Republicans.
Just a week ago, Paulson led a delegation with big-time political firepower to Beijing. The tough-talking group”which included Cabinet members and Federal Reserve Chairman Ben Bernanke”raised hopes that Washington was finally ready to crack down on the Chinese for the way they manage their currency. [Full Text]
Related report from AP: “Report: China currency not manipulated“
