In 2005, China incrementally budged its currency after heavy pressure from the U.S. The move was expected to “trim the trade gap” between the two countries. Unfortunately, that didn’t happen, as annual trade figures from the Census Bureau demonstrate:
2009 $226.8 billion (a drop-of from previous year due to recession)
2008 $268 billion
2007 $258 billion
2006 $234 billion
2005 $202 billion
2004 $162 billion
2003 $124 billion
2002 $103 billion
2001 $83 billion
Now, China is suggesting again that it will revalue. But will the U.S. actually see tangible results of a meaningful revaluation? Or will history repeat itself.
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