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China's trade surplus widens in June on slowing imports | China's trade surplus widens in June on slowing imports |
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China's trade surplus widened in June as import growth weakened, underscoring worries about both the domestic and global economy. | China's trade surplus widened in June as import growth weakened, underscoring worries about both the domestic and global economy. |
The trade surplus grew to $31.73bn (£20.46bn), up 42.9% from the same month last year, the customs bureau said. | The trade surplus grew to $31.73bn (£20.46bn), up 42.9% from the same month last year, the customs bureau said. |
The main contributor was weak imports which grew by 6.3%, about half the pace analysts had been expecting. | |
China's domestic economy has been one of the major drivers of global growth. | China's domestic economy has been one of the major drivers of global growth. |
Trade conflict | Trade conflict |
China's trade surplus with the US and other countries has pitted it against its trading partners in recent years. | China's trade surplus with the US and other countries has pitted it against its trading partners in recent years. |
China has been a massive exporter of cheap goods and the country has been accused by some in the US of keeping its currency, the yuan, undervalued, giving it a competitive advantage. | |
The allegations of "currency manipulation" are a subject of heated debate in the US election campaign this year, with some criticising the current administration for being too soft on China. | |
"A large trade surplus continues to put pressure on the yuan to appreciate, otherwise there may be trade sanctions from trading partners and a conflict with the United States," said Li-gang Liu from ANZ in Hong Kong. | |
China has allowed the yuan to appreciate at a very gradual pace. However, critics say it is still undervalued. | |
Domestic worries | Domestic worries |
The latest trade data out on Tuesday have also highlighted recent concerns that slowing demand from Europe and the US will hurt the Chinese economy. | |
Exports beat analysts' expectations, rising by 11.3%. However, that is still slower than growth of 15.3% in May. | |
The data comes days after the Chinese Premier Wen Jiabao said China faced "relatively large" downward pressures. | |
Mr Wen also said authorities would intensify their response to any economic slowdown and encouraged exporters to explore markets in Asia. | Mr Wen also said authorities would intensify their response to any economic slowdown and encouraged exporters to explore markets in Asia. |
Last week, in a surprise move, the government cut borrowing costs for the second time in a month, raising concerns China may have recorded weaker growth than expected in the second quarter. | |
The official government report is due on Friday, and will include China's gross domestic product, fixed asset investment and industrial production. | The official government report is due on Friday, and will include China's gross domestic product, fixed asset investment and industrial production. |