Reply #13: China June trade surplus swells five-fold

[UpInArms]

http://today.reuters.com/investing/FinanceArticle.aspx?type=businessNews&storyID=2005-07-11T124311Z_01_PEK292938_RTRIDST_0_BUSINESS-ECONOMY-CHINA-TRADE-DC.XML

BEIJING (Reuters) - China's trade surplus for June swelled five-fold from a year earlier as exports grew much faster than imports, offering more ammunition for foreign critics who argue that Beijing should let the yuan rise in value.

The June surplus grew to $9.68 billion, exceeding forecasts of $8.0 billion and towering above the $1.8 billion surplus recorded for June 2004.

"The very large trade surplus will give the U.S. and Europe more excuse to put pressure on China to revalue the yuan," said Toshikatsu Kimura, greater China economist with Daiwa Securities in Shanghai.

"China needs to import more goods and services to avoid a trade war, but it will be very difficult to import more if it doesn't want to change its macroeconomic policy," he said.

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Chinese exports remained buoyant in June, rising 30.6 percent on the year, while imports growth grew just 15.1 percent, which was also far slower than the growth seen for much of last year, according to Customs data seen by Reuters and later confirmed by official media.

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