NewsMine — economy — united-states — 2007-jan-may — Viewing Item

Trade deficit with china reaches record 214b { January 10 2007 } Original Source Link: (May no longer be active)    http://www.ft.com/cms/s/c14d05c4-a0b3-11db-acff-0000779e2340.html http://www.ft.com/cms/s/c14d05c4-a0b3-11db-acff-0000779e2340.html US trade deficit with China reaches record $214bn By Eoin Callan in Washington Published: January 10 2007 14:20 | Last updated: January 10 2007 14:20 The US trade deficit with China has reached an all-time high, according to figures published on Wednesday, which will fuel calls in Washington for Beijing to revalue its currency. The politically-sensitive trade gap with China reached $214bn in November, shattering the 2005 annual record of $202bn and putting the total on track to exceed $230bn. The overall US international trade deficit in November narrowed to $58.2bn from $58.8bn, as strong demand from America’s trading partners pushed exports to a record. The rise in exports is likely to bolster US economic growth for the fourth quarter, but the widening trade gap with China will increase the domestic political pressure on Hank Paulson, US Treasury secretary, to persuade Beijing to allow its currency to appreciate. Mr Paulson, a former head of Goldman Sachs, has initiated a strategic economic dialogue with China aimed at persuading Beijing to embrace further financial reforms. But there is mounting impatience in Washington, where some members of the newly-elected Congress are proposing legislative action aimed at China. The threat is a response to rising protectionist sentiment in the US and pressure from manufacturers, which blame China’s weak currency for giving exports from the country an artificial advantage and fuelling the trade gap. Frank Vargo, of the National Association of Manufacturers, said Mr Paulson had until the middle of the year to show results from his dialogue with Beijing before Congress began moving on retaliatory action against China. Max Baucus, chairman of the Senate finance committee, is expected to introduce legislation that would lower the burden of proof for China to be accused of “currency manipulation”, clearing the way for trade sanctions. A more aggressive approach has been adopted in the House, where Sander Levin, head of the trade subcommittee, will introduce a controversial bill to permit the use of anti-subsidy laws against products from non-market economies such as China. Copyright The Financial Times Limited 2007

Almost 7m kids die a year from hunger Anxiety over housing market pulls down stocks { March 28 2007 } Credit counselors overwhelmed by mortgage crisis Dollar drops under half british pound { March 2007 } Dollar may fall on weak manufacturing { December 2007 } Dollar nears record low against euro { March 2007 } Dow fell over 500 points { January 2007 } Dow hits 12800 record high { March 2007 } Existing home sales fall 8 percent { March 2007 } Factory orders plunge { March 6 2007 } Gold selloff continues to cover equity losses { February 2007 } Greenspan warns of US recession { January 2007 } Hershey cuts jobs builds plant in mexico { January 2007 } Home prices to fall for first time since great depression { April 12 2007 } Investers sell gold to recover market losses { January 2007 } January 2007 new homes sales fall 17 percent Jobless numbers highest in weeks { December 2007 } Late mortgage payments up forclosures surge { March 14 2007 } Retail sales fell sharply last month { May 11 2007 } Soaring rates risks 2m american homes { March 14 2007 } Stocks plummet on subprime concerns Trade deficit with china reaches record 214b { January 10 2007 } US food prices spiked { March 2007 } US productivity growth behind EU for first time { December 2007 } Wallstreet plummets after chinese stocks drop { January 2007 } Files Listed: 25

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