This week, Chinese officials are in Washington, D.C., this week for their annual Strategic and Economic Dialogue meeting, and topping the list of discussion points between the world’s largest economic powers is the issue of China’s currency.
The United States has been pressuring China on the value of the yuan for some time now. And while Beijing has its own game plan when it comes to its currency, new trade data out yesterday may put more pressure on China to send the yuan higher. Dramatic Surge in China’s Trade Surplus
China’s trade surplus swelled dramatically in April as a result of slower import growth and exports that kept powering ahead. The surplus widened to a whopping $11.4 billion in April, compared to a meager $139 million in March. This was a big surprise, as the average analyst expectation was for the trade surplus to come in around just $1 billion. Read