Trade deficit: China keeps beating up on U.S.

When is the United States going to start getting tough with China about international trade and, more specifically, about the trade deficit?

Month in an month out, the U.S. gets hammered with a ballooning trade deficit, and the country that's pounding on us most is China -- which shows little sign of wanting to help.

If there's any good trade news to be gleaned, it's that U.S. exports of goods and services hit an all-time high of $141.7 billion in October. But that gain was submerged by an increase in imports to $199.5 billion.

And according to Commerce Department figures, the deficit with China vaulted to $25.9 billion, an increase of 9.1 percent and a single-month record.

Simplified, a deficit occurs when a country imports more than it exports. And that's where China has us over the trade barrel -- Americans just can't seem to get enough of Chinese goods, despite tainting and other safety scares.

The grumbling index in Congress is increasing right along with the trade deficit. Literally dozens of bills have been introduced that would punish China for what are being called unfair trade practices. Critics point to 3 million manufacturing jobs lost since 2000.

However, recent talks in China showed that the Chinese are quite comfortable in their present position, and even belligerently arrogant. In talks with Treasury Secretary Henry Paulson, Chinese Vice Premier Wu Yi said of threatened economic actions, "I need to be quite candid about this: If these bills are adopted, they will severely undermine U.S. business ties with China."

Read Complete Story