For the first time, China has replaced Canada as the largest exporter to the U.S.
The federal bureau of economic analysis says that in 2007 Canada’s exports to the U.S. climbed 3.5 percent to $313 billion. But at the same time China’s exports to the U.S. rose nearly 12 percent to $321 billion.
China has had the largest trade deficit with the U.S. since 2001, due largely to the relative low level of U.S. exports to the Asian trading giant. In 2007, Bloomberg reports, it again hit a record, $256.3 billion.
Bloomberg also reports that China's ascension may lead to a backlash in Congress, where lawmakers accuse China of undervaluing its currency, producing unsafe products, and providing its industries with subsidies that allow them to undercut American-made goods.