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The incredible growth of the Chinese economy continued in the first quarter of 2006, estimated to be 10.2%. This dispels expectations that the giant was on the verge of slowing.
With China’s GDP expanding by 10% a year between 2003 and 2005, it has quickly surpassed the economies of Italy, France and now, with that pace continuing, Britain. Only the American, Japanese, and German economies remain larger.
The news came days before Chinese President Hu Jintao visited the U.S., where trade and exchange rates were already bound to be the top and most contentious issues.
Some U.S. lawmakers and economists believe the yuan is overvalued by as much as 40%, essentially handing China a tremendous trade advantage that is quickly eliminating American manufacturing jobs.
Source: The Times (London)