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China-US trade trends flash a warning signal
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A report issued by the China Customs on September 22? saw a shift in the balance of trade with the US as a warning signal for the Chinese economy, against the background of the US subprime crisis and the rapid appreciation of the yuan against US Dollar, the Shanghai Securities News reported Tuesday.

Statistics in the report reveal that, from January to July, the growth rate in exports to the US dropped 8.1 percent, while the rate of growth of imports from the US rose 7.9 percent.

The report linked such trends to America's credit crunch and the rapid appreciation yuan against US Dollar.

Since China reformed its foreign exchange regime in July 2005, the rising yuan has made Chinese exports more expensive in the global market and helped sharpen the competitive edge of US exports. In the first quarter of 2008, the US economy was largely driven by its export sector.

The Bush administration has cut taxes and lowered interest rates to stimulate the economy but economic stagnation is inevitable and will last a long time, making it likely that trade protectionism will once more rear its ugly head.

(China.org.cn September 23, 2008)

For more details, please read the complete story in Chinese:

(http://paper.cnstock.com/paper_new/html/2008-09/23/content_64520961.htm)

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