By Lee J. Miller and Kim Kyoungwha
Dec. 2 (Bloomberg) -- U.S. Treasury Secretary Henry Paulson may clash with Chinese officials this week when he seeks a stronger yuan at meetings in Beijing, according to TD Securities Ltd. and CFC Seymour Ltd.
Paulson plans to reiterate the case for a stronger yuan to aid U.S. companies by making it more affordable for China to buy foreign goods. The government of the world’s most-populous nation may favor a weaker currency to support sales abroad.
China has the upper hand, said Dariusz Kowalczyk, a Hong Kong-based currency analyst with CFC Seymour Ltd.
“If you want to deliver bad news to the U.S., do it now, when their authority has been weakened by the financial crisis and Paulson’s credibility has been hurt as well,” Kowalczyk said yesterday.