The emergence of China as an economic superpower

Henry Paulson, the U.S. Treasury Secretary, insists that the U.S. should keep its markets open. He also urged China to open up its own markets to a greater extent, so that it could assume its full role alongside with America in the promotion of a stable and prosperous world. (For details please see Paulson’s speech.)

In fact, the Bush Administration has placed restrictions on the extent of foreign ownership in a variety of industries for years, from airlines to media to military contractors. In the past, these restrictions have mostly affected developed countries like Japan and Germany.

Last year, both Democrats and Republicans reacted angrily to the bid of China National Offshore Oil Corp for purchasing the Unocal Corp. Many members of Congress said the bid raised national security concerns.

Paulson said both the United States and China should cool the heated rhetoric protectionists. I believe Paulson is right.