Recall how the Obama administration refuses to label China a currency manipulator. Now recall the U.S. needs 10,600,000 jobs just to return to a 5% unemployment rate. Now recall the U.S. has lost 2.4 million jobs due to China from 2001-2008.

Now the news, China's trade gap increased 140% from one year ago.

The trade gap rose 140 percent, to $20.02 billion, compared with a year earlier, the customs bureau said on its Web site on Saturday. That compares with the $15.6 billion median estimate of 24 economists surveyed by Bloomberg News. Exports surged 43.9 percent compared with a year earlier and import growth moderated for the third month, rising by 34.1 percent.

Notice how exports soared while imports, uh, not so much.

The value of outbound shipments rose to a record $137.4 billion last month, the customs bureau said. The previous high was $136.68 billion in July 2008, before the global financial crisis deepened. The 43.9 percent expansion compared with the median 38 percent forecast in a Bloomberg News survey of 24 economists.

The WTO has ruled against Airbus for illegal government subsidies.

The World Trade Organization ruled Wednesday that European governments gave planemaker Airbus illegal subsidies in its battle with U.S. competitor Boeing Co., in a first key ruling on a long-running dispute between the European Union and Washington.

Problem is the ruling is over 1000 pages and interpretation, as in will anything happen as a result, is confusing. So now the U.S. and the EU are arguing over what the ruling means.

Take, for example, one key argument in the dispute: did the U.S. prove that Airbus funding was harming Boeing? The U.S. says yes, as the panel recognized the ''serious prejudice'' suffered by the Chicago-based company.

But the EU is happy that American claims of ''material injury'' were rejected.

There were differing views on whether that means European subsidies were responsible for lost American jobs or market share.

Another question is what this means if the U.S. wishes to subsidize and protect key industries and innovation for future economic growth.

Notice this ruling comes years too late to stop Airbus from taking away orders and business from Boeing.

Meanwhile EPI has a new report, which shows China subsidized it's paper industry by $33 billion dollars from 2002-2009 to overtake the global market.

From CBS Market Watch:

Exports surged 48.5% in May from a year earlier to $131.76 billion, while imports were up rose 48.3% to $112.23 billion.

There is a Strategic and Economic Dialogue between the United States and China in Beijing starting Monday. So far we have seen the United States wimp out on truly confronting China on currency manipulation. Both Secretary of State Hillary Clinton and Treasury Secretary Timothy Geithner are attending.

Reuters:

U.S. and Chinese officials have stressed that the meeting in Beijing will not be dominated by the yuan.

There are some rumblings by Clinton on the economy:

"In the coming days, officials at the highest levels of our two governments will be discussing issues of economic balance and competition," Clinton said in a speech given in a vast hangar at Shanghai airport, referring to the Beijing meeting.

"Transparency in rule making and standard setting, non-discrimination, fair access to sales to private sector and government purchasers alike, the strong enforcement of intellectual property rights are all vitally important in the 21st century global economy," Clinton told the audience of U.S. and Chinese business executives.

"American companies want to compete in China," she said, standing in front of a Boeing 737. "They want to sell goods made by American workers to Chinese consumers with rising income and increasing demand."

Meanwhile CBS MarketWatch reports: