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U.S. Risks Losing Finance-Industry Dominance, Hank Paulson Warns

Hank Paulson
Hank PaulsonPhotographer: Tiffany Hagler-Geard/Bloomberg

Former Treasury Secretary Hank Paulson warned the U.S. risks losing its dominance in the global financial industry -- and with it the many benefits of the dollar’s primacy -- if politicians don’t adopt a smarter approach to dealing with China.

U.S. financial leadership “is increasingly being challenged by fierce competition from abroad and by shortsighted and counterproductive policies at home,” Paulson, who also led Goldman Sachs Group Inc., wrote in an op-ed posted Wednesday on the Wall Street Journal’s website. “At the same time China is working to attract global capital, the U.S. is moving in the opposite direction.”