China’s Shrinking Trade Surplus
Throughout 2010, China was criticized by the US Congress (and many others) for “manipulating” its currency in order to maintain an advantage for exports, and thus preserve its trade surplus. But China’s trade surplus has decreased by by more than half relative to GDP over the past two years, despite the slow pace of the renminbi's appreciation.
BEIJING – Throughout 2010, China was criticized by the United States Congress (and many others) for “manipulating” its currency in order to maintain an advantage for exports, and thus preserve its trade surplus. China’s behavior, it was alleged, was the source of today’s huge global imbalance.