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China records surprise rise in its trade surplus in July
Last Updated(Beijing Time):2008-08-12 11:00

China's trade surplus unexpectedly rose 3.8 percent last month from a year ago to US$25.28 billion, the General Administration of Customs said yesterday.

The July surplus was also higher than the US$21.3 billion recorded in June.

Exports expanded 26.9 percent in July from a year ago to US$136.68 billion, faster than 17.6 percent in June. Imports jumped 33.7 percent year on year to US$111.39 billion in July, compared with the 31-percent increase a month earlier. The total trade for July hit US$248.07 billion last month, a jump of 29.8 percent from the same period last year.

In the first seven months, China's trade surplus fell 9.6 percent from a year earlier to US$123.7 billion.

"The Chinese currency is showing a clear tendency for a slower appreciation these days and even weakened against the US dollar in the past few weeks, easing the pressure for exporters and raising their sentiment over the outlook," said Xue Jun, an analyst with Changjiang Securities Co, who considered it a major reason for the faster export growth.

The yuan has accelerated about 6.5 percent in the first half of this year, doubling the pace in 2007. It triggered widespread worries among exporters and partly caused the bankruptcy of 67,000 domestic companies in the first half.

To help the exporters and prevent an inflow of speculative capital, experts have urged the government to slow the yuan's rise. The yuan has fallen 0.2 percent against the greenback so far this quarter.

Understanding the situation, the government has also started to take concrete measures to rescue the exporters troubled by the stronger yuan, the higher production cost and the weaker external demand.

China raised export tax rebates on textiles and garments from 11 percent to 13 percent this month.

Exports to the United States in July grew 13.2 percent to US$23.6 billion, from 8.9 percent in June.

Emerging markets such as Brazil and India posted an astonishing jump in exports of 89.7 percent and 49 percent respectively last month.

The European Union was China's largest trading partner in July with bilateral trade of US$41 billion.


Source:Shanghai Daily 
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