China trade surplus shadows Obama visit
HONG KONG - China's surging trade surplus, with the increase last month almost double the September figure, makes it impossible that trade issues will not be a key topic when United States President Barack Obama makes his first visit to Beijing this Sunday.
The surplus was US$24 billion in October, compared with $13 billion in September, bringing the total for the year so far to $159.23 billion.
Trade tension between the two countries was already rising before the latest data were released on Wednesday, with the US imposing a series of anti-dumping sanctions on Chinese imports
The Chinese government already know that America has to resort to trade protectionism. They already know the President Obama will be bringing some anti-dumping restrictions to the negociating table.
But USA is not the only nation that has to talk about high import tax on 30% or so of chinese products. Tires and steel pipes is just the beginning of a very needed form of protectionism. With out that factor it will be practically impossible for US and Western manufacture bases regrowth.
China is not silly and has already formed plans to improve its home consumer market. However China will be against anti change without its authoritive word and agreement. It may hold most of the aces but it still needs the west to keep its economy sweet.
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