wrote:
It's actually starting to decrease, the trade deficit with China due
to
increased construction, requiring more imports from other countries,
US
included.

The real problem lies in their currency, pegged to the U.S. dollar.
They need to let their currency free-float on the market before
things
can really even out.

You might want to read up on how we are scapegoating China's currency
for our deficit problem. Here's an article from LA Times just couple
weeks ago:

http://www.latimes.com/news/op=ADini...873=AD82.story


***April 16, 2005***

"The escalating China-bashing in Congress on other fronts is
threatening
to create a far greater economic problem than any we face currently.
Sen. Evan Bayh (D-Ind.) is threatening to hold up the confirmation of
the Bush administration's nominee for trade representative, Rep. Rob
Portman (R-Ohio), unless the Senate considers his bill aimed at
stemming China trade. Another bill would slap hefty tariffs unless
Beijing stops pegging its currency, the yuan, to the dollar.

The currency issue is a convenient scapegoat.

Unless you live on the other side of the Pacific, it's far better to
blame an undervalued yuan for all our supposed ills than it is to blame

federal budget deficits or the Federal Reserve's role in artificially
inflating consumer spending. Nor is it convenient for members of
Congress to dwell on the fact that Washington has often advised other
nations to peg their currencies to the dollar as a means of encouraging

stability, and that as recently as the East Asian financial crisis of
the late 1990s the U.S. was grateful that China didn't devalue the
yuan."

And this trend of China bashing goes way back, as the exact same issue
also came up couple years ago:

http://yaleglobal.yale.edu/dis=AD=AD...icle?id=3D2814

"The Fine Art of China-Bashing

As the Bush administration pushes even harder on China to revalue the
yuan, the real motivations behind the "China-bashing" by US officials
remain shady. Is the administration's rhetoric really meant to "help
U=2ES. manufacturers compete against Chinese companies", ask the authors,

"or just help U.S. politicians score points with anxious voters"? When
the US Treasury Department found China innocent of manipulating the
yuan in its recent report, members of the US Congress attacked the
agency as weak-willed and are choosing to ignore the study's
conclusions."


Supposedly the Chinese gov't are gearing up for this, or they're just
paying lip service to the U.S. Congress, nobody really knows except
for
Beijing.

Congress won't do anything but pass unenforcable puffery legislation
out of fear of the backlash from U.S. business interests and Chinese
relations.
=20
A tangled web, indeed