CHINA MOVES PASSED GERMANY: A TERRIBLE IRONY? [+] serious ballot by patch22us ACTIVE Thu Oct 25, 07 - Sat Nov 24, 07 China has now moved into the number one spot as the world's largest exporter. The rankings are now China, Germany and the USA (the USA and Germany are about even, with Germany slightly ahead). China beats Germany to take world trade crown By Ambrose Evans-Pritchard and Mark Kleinman in Hong Kong China has surged ahead of Germany for the first time to become the world's top exporter, prompting ever louder demands from the United States and Europe to revalue the yuan. Data from the World Trade Organization show that the country vaulted past the US at the beginning of this year and has since moved at lightning speed to eclipse Germany's once indomitable export machine. It shipped $111bn (£54bn) worth of goods in August, up 55pc from a year earlier. Now boasting 8pc of global exports – three times the Britain's dwindling share – China has jumped up the technology ladder. Machinery, equipment and cars now make up 46pc of total exports, while textiles are fading from the picture. Beijing let the yuan break through the key barrier of 7.5 to the dollar yesterday, but seems determined to resist Western pressure for faster appreciation. US Treasury Secretary Henry Paulson said it was in China's own interest to let the yuan rise, given the clear signs of overheating. -Beijing's policy of holding down the yuan through purchases of US and other foreign bonds has caused reserves to mushroom to $1,430bn, driving up inflation to 6.5pc. Japan said yesterday its exports to the US plummeted 9.2pc in August, a sign that contagion from the US downturn may be spreading. In Washington, Congress has already drawn up plans for sanctions against China, accusing the regime of stealing market share by manipulating the yuan. But now Europe is buckling under China's export blitz. The euro has risen 18pc against the yuan over two years. The EU's trade deficit with China may top $220bn this year. Peter Mandelson, the EU trade commissioner, has warned Beijing that it must curb the tidal wave of goods flooding EU markets, or risk turning a friend into a foe. "It's a question of China... being more conscientious in shouldering their fair share of the demands of this trading relationship," he said. The yuan has appreciated 8pc against the dollar since the creation of a crawling peg in July 2005, but the move has barely made a dent on exports. Wu Xiaoling, the deputy governor of the central bank, said China would move at its own pace. "Maybe we are not rushing things as some people wish us to do, but we are moving in a correct direction and in a smooth manner," she said. By delaying, China is importing inflation. This will ultimately have the same effect on its competitiveness by pushing up labour costs, but at a greater cost to political and economic stability. Food price rises are now nearing levels that set off the Tiananmen Square protests in 1989. So now even Europe sees the threat and an over-valued currency is seen as the real threat to a nations' growth that it really is...which is why China keeps theirs low! The irony of all this is: this is all due to Western corporate greed. Something like 50% - 60% of what China is "exporting" is things they make for Western companies so we are in effect, enabling them to surpass the West. Do you agree that greedy Western companies in the USA, Canada and Europe have created their own mess? Yes, this is a result of Western corporate greed No, this is not a result of western corporate greed Ballot #119039 : SEE RESULTS Comment: show your vote with comment?

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