Monday, July 11, 2005

UNSUSTAINABLE TRADE DEFICIT GROWS 5 FOLD IN 1 YEAR

From AP:
China's trade surplus for June swelled five-fold from a year earlier as exports grew much faster than imports, offering more ammunition for foreign critics who argue that Beijing should let the yuan rise in value.

The June surplus grew to $9.68 billion, exceeding forecasts of $8.0 billion and towering above the $1.8 billion surplus recorded for June 2004.

A very dangerous and worrying trend. China needs to be slapped down for this type of trade policy. Their currency is woefully undervalued. The U.S. needs to impose tariffs to "encourage" China to let their currency float...