August 9, 2006 – China’s trade surplus jumped to a record $14.61 billion in July, surpassing June’s $14.5 billion record. News of China’s widening trade gap provides further evidence they must take steps to further revalue their artificially low currency.
China had a record $102 billion trade surplus in 2005, up drastically from $32 billion in 2004. China’s surplus for the first half of 2006 was $61.5 billion, a 55 percent increase from the first half of 2005. By undervaluing their currency by up to 40 percent over the last decade, China has cost the U.S. thousands of manufacturing jobs. The artificially low yuan also led to the U.S.’s record $202 trade deficit with China last year.