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03/10/2006:

"US trade deficit widens to record $68.5bn"

The US trade deficit ballooned to a record $68.5bn in January, far surpassing expectations and raising the prospect of a large drag on economic growth in the first months of the year.

The sensitive bilateral trade deficit with China climbed to $17.9bn in January from $16.3bn, a figure that is likely to hinder administration efforts to contain mounting frustration in Congress over the rising deficit, and create a tense backdrop for the official visit of Hu Jintao, the Chinese president, next month.

With President George W. Bush facing a revolt from congressional Republicans over the Dubai ports deal, the administration could find itself in a weakened position in its long-standing efforts to stave off punitive trade legislation against China. The Republican chairman of the Senate finance committee said last month he would begin drawing up a bill to deal with the growing array of US trade frictions with China.

“The American people need a Congress and an administration that will get tough on trade policy to rein in these runaway deficits,” said Benjamin Cardin, the senior Democrat on the House of Representatives subcommittee on trade. “When you look at trade deficits in the context of growing foreign ownership of our national debt, you see that we’re increasingly beholden to the very countries whose markets we’d like to open to American goods. Unless we reverse this dangerous trend, we’ll soon find ourselves without negotiating leverage to promote our trade agenda.”
news.ft.com


China rejects US rights 'hypocrisy'
China has rejected US criticism of its record on human rights in an official rejoinder which says racial discrimination and crime are still rife in America.

The State Council, China's cabinet, denounced America on Thursday for what it called rampant violence and widespread discrimination against minorities, especially blacks, in its annual response to the US state department's report on human rights worldwide.

"As in previous years, the state department pointed the finger at human rights situations in more than 190 countries and regions, including China, but kept silent on the serious violations of human rights in the United States," the Chinese report said.