China Uses Global Trade Rules to Advantage

China has skillfully been using inconsistencies in international trade rules to spur its own economy at the expense of others, so it is no surprise that China has been recording annual growth rates as high as 8%. They are doing so by fighting against protectionism among its trade partners and holding down the value of its currency. China buys dollars and other foreign currencies by selling more of its own currency, which then depresses its value. That intervention has led to exports to increase 46% in February compared with a year earlier. As a result, China had a $198 billion trade surplus with the rest of the world last year, with its exports to the United States outpacing imports by more than four to one.