An editorial in the Guardian on U.S.-China trade, as Vice Premier Wu Yi and U.S. Treasury Secretary Hank Paulson meet in Washington:
China-bashing plays well in America. The biggest charge against the People’s Republic is that it keeps its currency weak to make it easier for Chinese exporters to sell their goods abroad. The result, the Americans claim, is that US manufacturers are sinking, taking jobs with them. Exhibit A for the prosecution is China’s trade surplus. In the 12 months to March, China sold $242bn more in goods to the US than it bought in return. No wonder that ahead of this week’s talks with the US treasury secretary, Hank Paulson, Beijing announced $4.3bn-worth of deals with American firms. It also weakened the Chinese currency a tad. Neither measure will buy Washington off. The yuan will remain a particular sore point since, on some estimates, it is 40% weaker against the dollar than it should be. [Full text]
