China’s Trade Surplus Increases

China’s trade surplus unexpectedly widened in July and producer prices rose at the fastest pace in 12 years, adding pressure on their government to let the yuan resume its appreciation, Bloomberg News reports. The surplus climbed 4% to $25.3 billion from a year earlier, customs bureau figures showed. Factory-gate prices increased by 10%.

The trade surplus along with the 26.9% increase in exports to $136.7 billion, topped the estimates of all 16 economists in a Bloomberg News survey. Overseas shipments grew a revised 17.2% in June. Imports increased 33.7% in July to $111.4 billion, up from 31%.

Exports to the U.S. rose 9.9% in the first seven months of 2008 from a year earlier after gaining 8.9% in the first half. Exports to the European Union increased 27.1% after climbing 27%. Shipments to Japan rose 15.9% after increasing 15.1%.