Possibly good news from China

It looks like China is inching closer to having its currency, the Yuan, fully convertible. This will make trade easier for many countries, making it harder for China to have dirt cheap exports (they will still be cheap, but our goods won't be as expensive for them). They are not all the way there yet, but they announced some steps that signal a potential start to that process.

If that happens, it should lead to lower trade deficits with China, although it certainly won't eliminate them given the far cheaper labor available in China.

You can read about it here:
http://story.news.yahoo.com/news?tmpl=story&cid=568&ncid=749&e=1&u=/nm/20050226/bs_nm/economy_china_yuan_dc