China’s trade surplus widens in October
China’s trade surplus widened lat month – to reach its second highest level this year, official data showed today.
The trade surplus grew to $27.1 billion (£17 billion) – far higher than September’s $16.9 billion but just slightly below the $28.7 billion reported in July.
Exports and imports grew considerably, with exports up 22.9% on an annual basis to $135.98 billion.
Imports, meanwhile, rose 25.3% to $108.83 billion compared with a year ago.
The US is expected to reveal its trade figures later today – with a deficit of around $45 billion and this is likely to trigger issues over trade imbalances and currency manipulation, according to Brian Jackson, a senior strategist at Royal Bank of Canada.
These two issues are likely to be high on the agenda at this week’s G20 meeting in South Korea.
The US has previously expressed dissatisfaction that China is keeping the value of the yuan low to help its exporters at the expense of overseas competitors.
Trade groups have argued that the yuan, also referred to as the renminbi, is kept up to 40% below what its value should be against the US dollar.
However, Beijing has previously said keeping the yuan stable is “an important contribution” to global recovery.
In related news, China’s rapid growth appears to be cooling after recent figures showed the economy grew by 9.6% in the third quarter, down from 10.3% in the previous quarter.