China must act to stop economy 'overheating' - US

Speaking on the eve of the US-China Strategic Economic Dialogue meetings in Beijing, the United States Treasury Secretary, Henry M Paulson, highlighted concerns raised by Chinese leaders on the country’s macroeconomic stability. Paulson wants the Chinese government to speed up currency appreciation, noting mounting inflation and growing asset bubbles as the major threat to the burgeoning economy. “A more flexible exchange rate policy is especially important to China now, given these risks,” Paulson says in his opening statement. “The pace of RMB (Chinese currency) appreciation remains on...