On the heels of the State Department releasing the 2006 Human Rights Report, the Chinese government issued its annual rebuttal. As expected - the Chinese find many faults with the US governments protection of human rights.
While speaking in Shanghai, Treasury Secretary Paulson focused on China's need for further capital market reforms. Unlike prior efforts, Secretary Paulson chose not to focus on the undervalued yuan and the US trade deficit with China (at least minimally due to the undervalued currency).
On the issue of reform, Chinese officials are considering tax and property law changes which would reportedly provide for private property rights and balance domestic and foreign corporate tax rates over time.