China's $1.08T surplus: Undervalued Yuan fuels export boom, risks trade war.

• China achieved a record goods trade surplus of $1.08 trillion in 11 months, by November.
• A significant factor for China's large trade surplus is the undervaluation of its currency, the Yuan.
• The Chinese Central Bank intervenes to keep the Yuan weak, making Chinese goods cheaper globally and boosting exports.
• Despite a massive trade surplus, the Yuan has only appreciated about 15% this century due to central bank intervention.
• This currency management strategy, while benefiting China, risks global trade wars and anger from other nations.

Why It Matters: China's undervalued Yuan distorts global trade and creates economic imbalance.