A change in approach has led to a change in the value of the Chinese yuan. Since Henry Paulson, a former CEO with Goldman Sachs, was named secretary of the Treasury this summer, the finger-wagging at China for not allowing market forces to determine the true worth of its currency has subsided. Paulson, with a deep knowledge of doing business in China, has shifted away from a confrontational approach when dealing with China and has stressed the need for both the U.S. and China to work together to benefit one another. China needs access to the U.S. to sell its manufactured goods-which many contend are made less expensive than they normally might be because of China's currency manipulation-and the U.S. needs China to continue to finance the government's debt and develop its own middle-class economy to buy U.S. exports.
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