China’s trade surplus reaches record in 2006

11 January 2007

Beijing, China, 11 Jan – China posted a record trade surplus in 2006, of US$177.47 billion, which is a year on year increase of 74 percent, official Chinese news agency New China reported.

Exports increased 27.2 percent year on year to US$969.08 billion and imports rose 20 percent to US$791.61 billion, according to figures from the Customs Administration.

In December, the surplus totaled US$21 billion, a little less than in November when it reached US$22.9 billion.

The surplus announced for 2006 is in line with analysts’ forecasts which pointed to a surplus of between US$170 and US$180 billion.

This surplus is a source of tension between China and its trading partners, particularly the United States and Europe, which largely blame Chinese competitiveness to the undervaluation of the yuan, which makes exports from China cheaper.

Between its revaluation in July 2005 and the en of 2006, the value of the yuan rose over 3.8 percent, but this is still not considered enough by China’s trading partners.

China, the world’s fourth-largest economy whose gross domestic product (GDP), according to estimates, grew 10.5 percent in 2006, already has over US$1 trillion in reserves. (macauhub)