China's Trade Surplus Scales New Heights
October 12 2007:
China's trade surplus reached $23.91bn in September, its fourth largest ever. Chinese exports in September rose 22.8% year-on-year to $112.5bn, while imports were up 16.1% at $88.6bn.
Demand from the US and Europe and boosted September's exports despite erosion of tax rebates aimed at curbing inflationary pressures.
Now, just three-quarters of the way into 2007, China's $185.7bn trade surplus has surpassed its previous record surplus of $177.47bn set in 2006.
The busiest part of the year - Christmas exports - is still to come.
The surplus will undoubtedly fuel the arguments of US - and increasingly European - critics who claim China is holding the yuan at artificially low levels.
China has allowed the yuan to appreciate by 8% since a revaluation 2005. Many critics believe the yuan is still undervalued when China's external payments surplus and productivity growth are taken into account.