Tuesday, June 06, 2006

PAULSON CONFLICTED OUT OF CHINA ISSUES? -- A big part of Treasury nominee Hank Paulson's record is his interest in -- and ties to -- China. Some see this as a selling point, but others decidedly do not:

But the U.S. Business and Industry Council, a group with a history of agitating for tough policies toward Beijing, is arguing that Paulson's associations pose a conflict of interest. Although Paulson is expected to sever his links to Goldman by disposing of his stock in the firm -- presumably by putting the shares in a blind trust, which would then sell them -- he would still feel obligated to Chinese officials, in the view of Kevin L. Kearns, the president of the group, which represents about 1,500 small and medium-size companies.

Without more, this seems like pretty thin soup.