Paulson calls for deeper currency reforms

US Trade Secretary Henry Paulson called for deeper economic reforms Monday in Beijing, the Financial Times reported. As expected, Paulson focused most of his comments on China’s currency peg, calling the existing policy a "proxy for reform". Paulson also stressed the need for broader action in developing open capital markets, which he called essential to the long-term success of currency reform. Paulson is under pressure from a Democrat-controlled Congress in Washington to produce substantial results on China’s currency, which many lawmakers believe to be deliberately undervalued. Paulson stressed the importance of warm Sino-US relations and asked both parties to focus on the positive aspects of recent progress. Paulson will meet with Chinese President Hu Jintao later this week.