China, Inc. Keeps Rolling

With its economy projected to grow at a "modest" 8% per year in 2006--it was growing by 10% annually--China has announced that its foreign currency reserves rose by 34% last year! (The US economy is growing at about 3% per year.)

This turn of events, Forbes notes, is largely fueled by the massive trade surpluses enjoyed by China with its trading partners from around the world, especially the US.

Notes Forbes:

Beijing is under pressure from Washington and other trading partners to let the yuan rise. They complain that the government-controlled exchange rate is too low, giving Chinese exporters an unfair price advantage and hurting foreign competitors.

So, far the government in Beijing is not budging on this matter. Is China, Inc. an arm of China, the unrepenant regime of repression, military build-up, and hegemonic designs? Duh!

Read the whole thing.