Added by Gary Dunn on August 23, 2010
For the third straight time, China’s Trade Surplus hit more than $20 billion this August. This seems, according to the US, that china’s currency is being undervalued.
The exact figure, which is $20.03 billion in excess this August ,is a lot higher compared to $15.7 billion about the same time last year. The exports went up by 34.4% and the imports also climbed up more than 35.2%.
US lawmakers will seek protection from Chinese imports. Next week, USA’s ways and means committee will discuss about China’s currency policy. This will be done after Premier Wen Jiabao’s controlled Yuans gain to less than 1 percent versus the dollar.
“With the yuan appreciating very slowly and U.S. mid-term elections drawing near, it’s inevitable that Sino-U.S. tension will heat up again,” said Ken Peng, an economist based in Beijing at Citigroup Inc.
He further continues, “Chinese officials may face confrontations over the yuan” in the forums and meetings that will be attended by the International Monetary Fund and about 20 nations in the following months.