China is now No. 2 in exports
Asian power tops U.S., could take lead from No. 1 Germany in 2008
Friday,  April 13, 2007 3:30 AM
Associated Press
GENEVA -- China surpassed the United States as the world's second-largest exporter sometime last year, according to figures released yesterday by the World Trade Organization, and the Asian country is pulling further and further ahead.

Export growth from China boomed 27 percent last year, outpacing all other major trading nations, the WTO said in releasing its first batch of global trade statistics for 2006.

While China finished behind Germany and the United States in total exports for the full year, it overtook the United States in the last six months of 2006 and will almost certainly finish above the U.S. in the 2007 totals.

At current growth rates, China is projected to overtake Germany as the world's biggest exporter in 2008.

"China's merchandise trade expansion remained outstandingly strong," the WTO said in its 21-page report. "Office and telecom equipment continued to be the mainstay of Chinese export growth, but significant gains in world market shares in 2006 could be observed in 'traditional' exports such as clothing and 'new' products such as iron and steel."

The WTO report comes at a time of rising tension between China and the United States, and some of the findings may fuel debate that Beijing's trade policies are preventing American goods from entering its vast market. U.S. critics accuse the Chinese economy of benefiting from an undervalued currency, illegal government subsidies, unfair barriers to foreign competition and widespread piracy.

The United States filed two complaints against China at the WTO on Tuesday over copyright policy and restrictions on the sale of American movies, music and books -- the culmination of years of agitation in Washington over one of the world's biggest sources of illegally copied goods, including DVDs, CDs, designer clothes, sporting goods and medications.

The Bush administration is trying to deal with America's rising political anger over its soaring trade deficit. The U.S. imbalance with China grew last year to $232.5 billion, the highest ever with a single country.

The WTO report said China's imports rose 20 percent last year to $792 billion, a surge that was "faster than global trade but continued to lag behind export growth."



Story tools

Shopping Columbus logo

Search Ads and
Grocery + Local Coupons

Community Headlines

Or click here, to read more headlines from your community.

Brought to you by:

ThisWeek Community Newspapers

AP Business Videos

AP videos require Macromedia Flash Player 7 and Windows Media Player 10.

Top Jobs

View all top jobs