Global imbalances have grown further
TheUS think tank Economic Policy Institutehas calculated that 83% of US trade deficit (2009 year to date) is on the account of China.
This means that imbalances have further grown. In 2007, only half of the US deficit was related to China.
The necessary "global rebalancing" has not even begun. This is a prerequisite to prevent a new global crisis in the future.
The EPI concludes:
China could do much to reduce this imbalance by revaluing its highly undervalued currency, giving up energy subsidies for exports, and forgoing the dumping of exports in the U.S. markets. China’s huge stimulus program has kept its economy growing at an 8% rate this year, and is able to consume many more U.S. exports
Of course, the US could do more to decrease the trade deficit, by applying a sounder economic policy based on investments and exports, instead of government spending and refuelling consumer credit.