Prices of products imported from China to the United States have registered a growth rate of 2.4 percent in 2007, US official statistics showed recently. According to the Beijing Morning Post, the Federal Reserve worries that the price hike, propelled by the devalued dollars and the upward spiral of China's Consumer Price Index, will block America from recovering from inflation, which formerly achieved relief from the cheap products mostly made in China.
According to the report, China has long been the "scapegoat" regarding American trade surplus. Yet cheap Chinese products virtually subsidize the purchasing power of American families. The report presumes that since the global industrial chain changes, the trade surplus would happen nevertheless, but from other countries to the US.
For more details, please read the full story in Chinese. (http://www.morningpost.com.cn/article.asp?articleid=146118)
(China.org.cn January 16, 2008)