Recently, some US senators have blamed China for the Sino-US trade deficit hitting a new high last year, and proposed placing a 27.5% tariff on all Chinese products if China does not revalue the yuan. They believe that if China appreciated its currency, the US deficit problem would be solved. But it is unfair to blame China when one considers the following facts.
Does China export too many products to the United States? No. According to US statistics, since 1994 Canada has been the biggest exporter to the US. In 2004, Canadian exports to the US amounted to US$256 billion, 30% more than Chinese exports that year. Before 2003, the second- and the third-largest exporters to the US market were Japan and Mexico. China became the second-largest only in 2003. The reason why the trade gap between the US and China is so large is that US exports to China are far less than those sent to Canada, Mexico and Japan.
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