Title: Why does the U.S. need China? - CNN.com
Headings: Why does the U.S. need China?
Why does the U.S. need China?
Content: This awareness and commitment can be found in black and white in various official policy papers including the recent Guide to the next Five Year Development Program. In fact, progress has been made in China in rebalancing growth. This year alone, trade surplus is likely to be below four percent of GDP, coming down from nine percent before the finance crisis and five percent last year. Imports are growing much faster than exports. Household consumption is outpacing GDP by five percent. How have these been achieved? Exchange rate appreciation is not the most important factor. The driving factors are domestic forces. Wage rates of the exporting sector have increased by 20 percent this year. Taxes were cut for some consumption goods.