China Posted Biggest Trade Surplus as Exports Surge ahead of Import Growth
For five years running China posted one of its biggest trade surplus as exports surge ahead of import growth thus potentially resurrecting friction with the US. Last November china’s trade surplus has increased to US$ 33 billion up from US$ 31 billion a month before. Exports rebounded which rose 12 percent from November of last year ahead of the 5.6 percent expected growth for October. Showing a positive sign that the world economy especially for china.
Even when imports grew a 5.3 percent year on year which aggravated the overall trade surplus in china brought the imbalance with the US to US#22 billion for the month of November. There is a persistent trade surplus and a source of contention between the two countries and is feed off China’s accumulation of more than US$ 3 trillion source of foreign exchange resources as the third quarter ended.
Even with the Chinese government committed to bolster the domestic demand and to liberalize exchange rate, the exports in the country will continue to outpace imports every month and with weak inbound shipments the trade surplus in November was said to be the largest trade surplus to happen since January of 2009.
China exports were one of the major source of revenue and have since suffered since the financial crisis that happened that affected the world which also made the United States and Europe an unreliable source of demand but a slow recovery in the recent months have help these developing world make a brighten outlook for the country’s recovery of its export system.