It's a self-correcting system that, theoretically, prevents big trade gaps between countries.
This will stimulate their exports and curb imports, thereby helping to slim the trade gaps.
China is under mounting pressure to raise the value of its currency, which some economists say may help ease those trade gaps and better balance the global economy.
Although the United States shortfall with China narrowed, record imports from Japan, Canada and Western Europe caused the trade gaps with those regions to widen.
Even wider trade gaps were recorded in Qinghai, Yunnan and Tibet.These deficits reflect the government's "Go West" campaign, an effort to invest in the infrastructure of the west.
BEIJING (AP) — China's trade surplus swelled in July to its highest level in eight months as its trade gaps with the United States and Europe grew despite concern about weaker global demand, according to data reported Monday.
In a joint statement, the ministers pledged not to use their currencies as trade weapons and to take steps to shrink damaging trade gaps to bring more stability to the global economy.
For most of this year, the debate over trade gaps has focused on China and the value of its currency, which many countries have charged is being kept artificially low.
Britain's deficit of 42.8 billion euros in the first five months of 2010 was the largest, while Spain and France both had trade gaps of more than 20 billion euros.
Not only are trade gaps in America and China shrinking, but the composition of growth within countries is also looking healthier.For the first time in years, China's exports are growing more slowly than America's.
Places like Brazil, South Africa and Turkey, whose exports fall far short of imports, finance their current-account gaps by building up debts to foreigners.In this section A leap in the dark Skewiff Feeling green The princes of paperwork Unfriending cash An empty chest Game of zones ReprintsEven countries without trade gaps have been borrowing heavily.
