Friday, February 15, 2008

Global Trade Imbalances and China

The latest trade numbers for China have come out and they continue the same trend. China is a trade juggernaut. The total volume of trade with China is over $2 trillion dollars. The Trade surplus for the month was above $20 billion. The trade surplus with the worlds was $262 billion and the trade surplus with the US was $256 billion. China is becoming more important for US trade than Canada. It is a larger exporter of products to the US.


It is more likely that trade restrictions with China will be a major topic for Congress even with the yuan appreciating. The change in the currency does not offset the cost advantage in many manufacturing areas.

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