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That one-off trade deficit back in March is starting to look like a well timed anomaly...
China Posts $20 Billion Trade Surplus as U.S. Seeks Yuan Gains
By Bloomberg News - Sep 10, 2010 3:33 AM MT
China posted a third straight trade surplus of more than $20 billion in August even as imports leaped, highlighting friction with the U.S. over claims that the nation’s currency is undervalued.
Exports rose 34.4 percent and inbound shipments climbed a more-than-forecast 35.2 percent, leaving a $20.03 billion excess, a customs bureau report showed today. That compared with $15.7 billion a year earlier and the median $26.9 billion estimate in a Bloomberg News survey of 34 economists.
The yuan had its biggest weekly gain against the dollar since June as sustained surpluses may fuel American lawmakers’ calls to escalate pressure on China. At the same time, the surge in imports may fortify Chinese officials’ position that the nation is already making progress in boosting demand for overseas goods, independent of the exchange rate.
“Strong export growth and high trade surpluses weaken the argument that China cannot cope with currency appreciation,” said Brian Jackson, an emerging markets strategist at Royal Bank of Canada in Hong Kong. August imports “point to solid domestic demand,” he also said.
The yuan gained 0.5 percent for the week to 6.7692 per dollar at the close in Shanghai, according to the China Foreign Exchange Trade System...
By Bloomberg News - Sep 10, 2010 3:33 AM MT
China posted a third straight trade surplus of more than $20 billion in August even as imports leaped, highlighting friction with the U.S. over claims that the nation’s currency is undervalued.
Exports rose 34.4 percent and inbound shipments climbed a more-than-forecast 35.2 percent, leaving a $20.03 billion excess, a customs bureau report showed today. That compared with $15.7 billion a year earlier and the median $26.9 billion estimate in a Bloomberg News survey of 34 economists.
The yuan had its biggest weekly gain against the dollar since June as sustained surpluses may fuel American lawmakers’ calls to escalate pressure on China. At the same time, the surge in imports may fortify Chinese officials’ position that the nation is already making progress in boosting demand for overseas goods, independent of the exchange rate.
“Strong export growth and high trade surpluses weaken the argument that China cannot cope with currency appreciation,” said Brian Jackson, an emerging markets strategist at Royal Bank of Canada in Hong Kong. August imports “point to solid domestic demand,” he also said.
The yuan gained 0.5 percent for the week to 6.7692 per dollar at the close in Shanghai, according to the China Foreign Exchange Trade System...