Widening Chinese Trade Surplus Increases Pressure to Intervene

"The announcement today, that China’s trade surplus reached a whopping $28.7 billion, 170% higher than its year-ago level and well above analysts’ estimates, is sure to increase pressure on China to Do Something about its currency. If China does not act, and the deficit next month is ugly, expect protectionist sabre rattling, and perhaps shots across the bow, like more imposition of targeted tariffs, to result."