China Trade Surplus Shrinks

January 10th, 2012
in econ_news

Econintersect:  China’s trade surplus fell to the lowest level in six years in china-current-account-annotated-10-jan-20122011.  In what is generally considered to be a combination of increasing domestic demand and slowing global growth, the current account surplus for The Middle Kingdom amounted to only $155 billion last year, as imports grew faster than exports.  China’s General Administration of Customs indicated that exports to developed countries in the west were nearly unchanged from 2010 but exports to emerging markets rose rapidly in 2011 (Shanghai Daily).

Follow up:

There has been pressure, from the U.S. in particular, for China to increase the rate of appreciation of the renminbi.  The latest data could change that.   From the Financial Times:

The falling trade surplus could ease pressure on China to accelerate the appreciation of the renminbi, in a year when US election politics have turned up the rhetoric over Chinese trade policies.

The precipitous decline in the trade surplus for China can be appreciated by viewing the following graph which is annotated to show the new data point:




The need for global rebalancing, and especially relative to China (and Germany as well), has been discussed by numerous analysts at Global Economic Intersection, most recently today by Michael Pettis.

Sources:  Financial Times, Index and Shanghai Daily

Note: Financial Times and Shanghai Daily articles were accessed through Econintersect Asia newspaper page.

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.



Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved