China announced monthly trade surplus of $35.2 bln in October

Visit the A exhibition hall of China Import and Export Fair in Guangzhou,
capital of south China's Guangdong Province on Nov. 3, 2008. (Xinhua Photo)
XinHua,
November 11, 2008

China's General Administration of Customs on Tuesday announced a record monthly trade surplus of 35.2 billion U.S. dollars in October.

It was the fourth consecutive monthly rise since July. Total foreign trade rose 17.6 percent from the same month last year to 221.4 billion U.S. dollars in October, according to the Customs website.

Though exports growth further slowed to 19.2 percent from 21.5 percent in September, which might have led to smaller trade surplus, the trade gap continued to widen on sharply declining imports.

China's exports reached 128.3 billion U.S. dollars, while its imports registered 93.1 billion U.S. dollars in October.

"Export growth is slightly higher than expected," said Asian Development Bank (ADB) economist Zhuang Jian. "But the impact of reduced demand from the European and American markets remains, and will continue to damage exports. The situation might be more severe next year."

Exports to the United States rose 11.4 percent to 212.8 billion U.S. dollars in the first 10 months, an acceleration of 0.2 percentage points from the first three quarters.

Exports to the European Union gained 24.5 percent to 246.7 billion U.S. dollars year on year, down 1.1 percentage points than the first nine months.

The growth of China's imports slowed much faster than expected, indicating a serious lack of domestic demand, Zhuang said.

Affected by the global economic slowdown, imports growth dropped from 33.7 percent in July gradually to 15.6 percent in October.

The decline in imports is not only caused by the slackening domestic demand, but also triggered by the fall in exports.

As a large proportion of China's imports come from the demand for resources and materials needed to produce finished export products, the decrease in exports has also pulled down imports, said Zhuang.

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Sources :

XinHua: China reports $35.2 bln record high trade surplus in Oct., November 11, 2008 16:02

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