Lastweek,wetoldaboutarecenttalkinWashingtonontradetiesbetweentheUnitedStatesandChina.FormerSecretaryoftheTreasuryHenryPaulsonspokewithFormerNationalSecurityAdvisorSteveHadley.ThetwomentalkedabouttherecentslowdownintheChineseeconomyandtheneedformorepersonalspendinginChina.TheyalsodiscussedtheneedforChinatoreformitsstate-ownedcompanies.Thesecompaniesoftenoperatewithlowinterestloansandalotofhelpfromthegovernment.AcoupleshopformobilephonesinBeijing.China'stradesurpluseshavebroughteconomicgains,butpoliticalreformhasnotkeptup.Earlierthismonth,PresidentObamasaidChinawascreating"anunfairplayingfield"initscarindustry.InJuly,theObamaadministrationrequestedtalks,orconsultations,attheWorldTradeOrganization.TheUnitedStatessaysChinahasunfairlyplacedmorethanthreebilliondollarsintaxesonimportsofAmerican-madecars.OfficialssayincreasingthepriceofimportshelpsChinesecarmakers.MisterPaulsonsaidChinesegovernmentaidforstate-ownedcompanies,likeoilcompaniesandcarmakers,willenduphurtingChina'seconomy.HENRYPAULSON:"TheonlywaythattheChinesearegoingtobeabletosuccessfullymakethetransitionthatthey'regoingtoneedtomaketoaneconomythat'smuchmoreefficientisbycontinuingtoreformthestateownedenterprises,havethemcompeteonalevelplayingfieldwithoutallthesubsidiesandthespecialbenefitsandiftheydon'tdothatthey'renotgoingtorealizethefullpotentialoftheeconomyandthey'renotgoingtomakethetransitionthattheyneedtomake."ChineseexportstotheUnitedStatesremainstrong.DemandforChinesegoodsrosemorethanelevenpercentinJune,comparedtothesameperiodlastyear.AndChinasaystotaltradesofarthisyearisnearlytwotrilliondollars.Thatisupeightpercent.China'sstrongimportshavehelpedthecountryraisemillionsoutofpoverty.ThesegainswerenotedatrecenthumanrightstalksbetweentheUnitedStatesandChina.But,AmericanofficialssaypoliticalreformsinChinahavebeenslow.TheheadoftheAmericandelegation,AssistantSecretaryofStateMichaelPosner,spoketoreportersthisweek.HenotedChina'seconomicgains.ButMr.Posnersaidpoliticalreformsinthecountryhavenotkeptupwithitseco