China Trade Balance with the US and the World
- China’s trade surplus with the US and the world has increased markedly since the RMB was revalued in July 2005.
- Through the third quarter of 2009, China’s surplus with the US and with the world as a whole is roughly double what it was in mid-2005.
- It must be noted that after the repeg of the RMB to the dollar in mid-2008, China’s overall trade surplus soared to a level more than 5 times that of early 2005.
- The United States has run a cumulative current account deficit in excess of $1.8 trillion with China in the last decade according to the U.S. Bureau of Economic Analysis.
Charles Blum and Donna Tung, IAS Group, Ltd.
November 12, 2009
