US Treasury Secretary Henry Paulson met with the new Vice-Premier Wang Qishan in Annapolis, Maryland to discuss the pressuring trade imbalance between China and US.
China exports to the US down 12.4 percentage points from the previous year. On the other hand, China’s imports from the US increased 7.9 percentage points from last year. As a result of the subprime crisis in the US, the US domestic demand is decreasing. As long as the US does not find a solution to the subprime problem experts suggest that the growth in exports from China will not increase as rapidly as the past years.
The pressure for economic protectionism is the most important trade issue that must be discussed among the US and China.
China and US Trade Imbalance Issues
