China Vows Action as Trade Gap Swells (WP)

[Omaha Steve]

http://www.washingtonpost.com/wp-dyn/content/article/2007/03/12/AR2007031200359.html

China Vows Action as Trade Gap Swells

By Ariana Eunjung Cha
Washington Post Foreign Service
Tuesday, March 13, 2007

BEIJING, March 12 -- China reported a trade surplus in February of $23.76 billion, a ninefold surge from the same period a year earlier and one of the highest monthly totals ever. It came as top government officials reaffirmed promises to take measures to reduce the widening gap.

The U.S. government for years has been concerned that artificial controls on the Chinese currency, the yuan, make Chinese exports to the United States cheaper while making U.S. exports to China more expensive.

China has resisted U.S. pressure to let the yuan fluctuate more, saying if it is done too fast it may complicate China's ongoing transition to a market economy. But Wednesday, just days after U.S. Treasury Secretary Henry M. Paulson Jr. came to China to press financial-market reforms, Chinese officials echoed some of his sentiments.

Zhou Xiaochuan, the central bank governor, said at a briefing that China was working toward a market-oriented financial system and would gradually increase the flexibility of the yuan, although he offered no details or timetable.

FULL story at link.

[rockymountaindem]

1. Oh good, more vague promises from our friends the Chinese

Happy days are here again! :sarcasm:

[brentspeak]

2. Well, that settles it then. The problem will be fixed. You can count on it.

guffaw, guffaw, guffaw...

[ayeshahaqqiqa]

3. and that flexibility will include

dumping US dollars for other currency--and also stopping the purchase of US bonds.

[kurth]

4. Action will be taken as soon as

the smog clears in Shanghai.

[Rydz777]

5. The Year of the Pig

This is the Year of the Pig. The Chinese consider the pig to be friendly and gullible. That's us for sure.