China’s Trade Surplus Hits $29.3 Billion

The Chinese government said their trade surplus hit a new monthly high of $29.3 billion in September, Manufacturing.Net reported. In a sign of more balanced trade, the surplus for the first nine months of the year actually shrank by 2.6%, or $4.92 billion, when compared with the first nine months of last year. During the first nine months of the year, imports from the U.S. rose 7% year-over- year to $62.4 billion.

The country’s exports in September totaled $136.4 billion, a 21.5% increase over the same month last year, while imports grew 21.3% to $107.1 billion. The September figure surpasses the previous monthly high of $28.7 billion set in August. The trade gap is fueling demands by the U.S. and the European Union for Beijing to lift trade barriers and loosen currency controls.

September’s surplus appears to shrug off warnings that businesses in the key export sector could suffer from the economic downturn in Europe, the biggest destination for Chinese goods. Trade with the 27- nation EU rose 25.9% over the first nine months of the year to $322.5 billion.

With housing prices cooling, the credit crisis and fears of higher unemployment, economists have cut growth forecasts for China this year to as low as 9%, down from last year’s 11.9%. ❖