Trade Surplus Heads for $250B, Whiners Getting Warmed Up
The trade surplus with China this year is likely to hit one quarter of a trillion dollars.
The United States and Germany whine because they think the yuan currency in undervalued.
Though the yuan=dollar rate has been adjusting, the trade deficit continues to climb.
What's to think that if China cut the currency rate in half it would make any difference?
China posted $185 billion in trade surplus the first nine months of this year, more than ALL of last year, already.
And Christmas is coming….
China needs to:
1. boost domestic consumption
2. increase imports
3. encourage outbound investment
4. resolve the imbalance.
The rest of the world needs to make something that the Chinese want at a price they can afford….THEN the deficit will work itself out.
What do you think?
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18/10/2007
Of course, but US is simply not selling stuff that China want to buy: technology product, know-how, oil company, etc etc etc… easily worth 50 60 billions per year or more and cut down on the hefty surplus. Other than that, I don’t know what US expect China to buy? Manufactured items? Get real… Nor is anybody going to invest billions setting up factories in US paying 50/hour + health insurance + benefits producing trinkets.
What can US export that China want to buy 250 billion of anyway?