There are already nine foreign banks licensed to conduct yuan business in the Pudong District of Shanghai. The official said expanding beyond that number would mean few of the foreign banks would be able to win significant market share. Dozens of overseas insurers have lobbied for an insurance license, but the government has granted sparingly. Only handful of foreign companies have been given operational licenses, nearly all limited to life insurance firms where China's state-run conglomerates have their firmest market position. U.S. has repeatedly called on China to step up implementation of a 1994 agreement on prison labor.
Human rights is also one of the biggest bones of contention between U.S. and China.
However Rubin said it was all about to get to know the Chinese better since the world's most populous nation was on its way to becoming one of the world's key economic players. China on Thursday announced lower tariffs on imported vehicles and some household appliances but this seems not impressive. U.S. is also complaining that the Chinese yuan at about eight to the dollar is undervalued. It appears to be the first public auction since the 15th congress called for restructuring state industry last week. The Guangzhou Special Steel Factory, which had employed 600 people, was sold for 50 million yuan in Guangzhou.