China's Growing Trade Surplus
China's trade surplus with the rest of the world just keeps on growing. While it means the country is being flooded with cash, it's also causing the government a number of headaches.
The surplus for September jumped fifty six per cent on the previous year to almost twenty four billion dollars. The surplus wouldn't be so big if Chinese consumers bought more goods from overseas but the rising middle class has been slow to spend its new found wealth.
Some lawmakers in America say that the reason that China's exports are so inexpensive is because the currency, the Yuan, is undervalued. They'd like to tax Chinese goods entering America to make them more expensive in the hope of protecting American manufacturers, although that wouldn't go down well with American shoppers who have grown used to falling prices courtesy of Chinese factories.