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2006-08-29 03:00 GMT:
US Treasury's Paulson to press China for banking reform

WASHINGTON (XFN-ASIA) - New US Treasury Secretary Henry Paulson will lobby for more foreign competition against China's banks when he visits the country next month, an official said.

Treasury spokesman Tony Fratto noted that China, under its commitments as a World Trade Organization member, has until the end of the year to unveil proposals on reform of its heavily protected financial sector.

"His (Paulson's) view is that it is in countries' interest to open up their financial sector," Fratto told reporters.

The spokesman declined to say when the former Goldman Sachs boss would head to China, but confirmed that his trip would include a stop in Singapore for a meeting of Group of Seven finance ministers.

The G7 ministers are set to meet on the margins of the annual meetings of the International Monetary Fund and World Bank, which this year takes place in Singapore on Sept 19-20.

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