China's trade surplus to quadruple this year

Surging exports to the US and EU will more than quadruple China's trade surplus to about US$140 billion this year, according to a US manufacturing group. As a result of this new analysis, earlier estimates that China's yuan is undervalued by 25-30% will now "have to be raised substantially," said the Manufacturers Alliance, which represents some of the major US companies, including Alcoa and Motorola. The Manufacturers Alliance report is intended to pressure Bejing to raise the value of its currency. On July 21, China increased the value of the yuan 2.1%, but most observers say that's not enough.