Bo Xilai, China's Commerce Minister, acknowledged his ministry is in charge of cutting the nation's large trade surplus, but he didn't provide any new details or plans. Bo however, was critical of a possible U.S. 27.5% tariff on goods imported from China. He was speaking yesterday, ahead of the customs agency's February trade data release, which showed a $23.76 billion surplus, the second highest ever. "The Chinese government never intends to pursue a large-scale trade surplus with others," Bo said. Regarding a potential U.S. tariff, he said it would be "disastrous" for both Chinese and U.S. companies, adding that "If it were imposed, it would be not only trade protectionism but also trade hegemony." The Associated Press said the minister argued 'a large share of the trade gap with the United States consists of goods made in China by American companies and exported to the U.S. market.'
Sources: Associated Press
Commentary: China's February Trade Surplus Blows Away Estimates, 2nd Highest Ever • Commodities, Gold and Silver to Benefit from China's New Investment Agency • Beijing Ready to Take on More Risk with Foreign Reserves
Stocks/ETFs to watch: iShares Trust FTSE-Xinhua China 25 Index Fund (NYSEARCA:FXI), PowerShares Golden Dragon Halter USX China Portfolio (NASDAQ:PGJ). Bonds: iShares Lehman Aggregate Bond (NYSEARCA:AGG), iShares Lehman 1-3 Year Treasury Bond (NYSEARCA:SHY), iShares Lehman 7-10 Year Treasury (NYSEARCA:IEF), iShares Lehman 20+ Year Treas Bond (NYSEARCA:TLT), iShares Lehman TIPS Bond (NYSEARCA:TIP). Currency: PowerShares DB G10 Currency Harvest Fund (NYSE:DBV), Euro Currency Trust (NYSEARCA:FXE)
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