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US-China trade gap hits record $214b

The US trade deficit with China reached an all-time high US$214 billion by the end of November, according to figures published in the US Wednesday, shattering the 2005 annual record of US$202 billion and putting the politically-sensitive trade gap on track to exceed US$230 billion for the full year. The figures are likely to increase domestic political pressure on US Treasury Secretary Hank Paulson to persuade Beijing to allow its currency to appreciate, the Financial Times reported. Frank Vargo, of the National Association of Manufacturers, said Paulson had until the middle of the year to show results from his dialogue with Beijing before Congress began moving on retaliatory action against China. Separately, figures released the same day by Chinese customs showed China's multi-lateral trade surplus soared 74% to hit a record US$177.47 billion for the full year in 2006.

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