Eric Balkan

Pressuring China On Exchange Rate Policy: Even When You Win, You Lose

Attracting capital causes a trade deficit? Then China, the country attracting the most capital worldwide -- an estimated 70% of their economy is due to FDI -- should have the largest deficit.

I agree that changing the yuan-dollar rate won't change much. The trade deficit we have with nearly everyone is because we no longer make very much that other people want to buy: airplanes, movies, packaged software... that's about it. Pretty much everything else, from medical care to computers to fuel is better/cheaper overseas.