The widening trade imbalance provided fresh ammunition to the growing ranks of China-bashers in the US Congress who revived sanction-imposing proposals Chinese imports aimed at a steeper yuan revaluation. US lawmakers now have no fewer than 15 proposals addressing China-US trade, and though none are likely to become law, the pressure is on the White House get tough on China.
Meanwhile, Chinese manufacturers appear to be creating trade frictions elsewhere as Chinese exporters face investigations by the EU, Turkey and other countries for allegedly selling below-cost cheap goods including shoes, televisions and air conditioners.
China's cumulative trade surplus for the year rose to US$50bn in July, dwarfing the US$32bn surplus for all of 2004.