China Threatens to Crash Dollar

Weak yuan is driving China's economy to a record expansion; trade surplus nearly doubled

(NEWSER) - China's trade surplus surged to a record $26.9B in June, an 87% increase since last year. Economists attribute the trade gap to China's significantly—as much as 40%—underpriced currency, the yuan, reports Bloomberg. Half of China's surplus is with the US, which recently began preparing legislation to sanction countries that deliberately use a weakened currency to gain an unfair advantage. More»

(NEWSER) - China is speeding up efforts to encourage the use of its currency in international trading, with analysts predicting that the Chinese renminbi will become one of the three top currencies by 2012, reports the Times of London. In recent months Beijing has inked currency-swap deals with central banks from Korea to Argentina and expanded the currency's use in financial powerhouse Hong Kong. It's a major change for China, which holds trillions in US currency. More»

Second place awaits after 100 years on top

(NEWSER) - China will surpass the US as the world’s No. 1 manufacturer by next year, the Financial Times reports. China, which last year accounted for 13.2% of manufacturing, will soon account for 17%, just ahead of the US, which has been the planet's dominant manufacturer for more than a century. The change had been projected to occur in 2013, but the weakening US economy accelerated that timeline. More»

Weak dollar, stronger world economies fuel rise in US exports

(NEWSER) - The US trade gap—the difference in total value between imports and exports—dropped to a 3-year low in July as exports jumped on a weak dollar and growing overseas demand. The figure fell 0.3% to $59.2 billion, roughly on par with the estimate economists surveyed by Bloomberg foresaw. Said one analyst, “the broad outlook for trade looks quite positive.” More»

Currency move may be concession to US—or attempt to pop a stock market bubble

(NEWSER) - Just days before a meeting with US Treasury Secretary Henry Paulson, China is taking baby steps toward letting its currency trade more freely. The government also raised interest rates and the reserve on bank loans today, signaling concern over the country's red-hot economy. China's trade surplus—which some American politicos say the undervalued yuan fuels—rose 74% last year. More»