China reports 2nd largest monthly trade surplus
China reported its second-largest trade surplus in July, reflecting a surge in exports that has led the US and
Europe to threaten sanctions.
China's Customs Bureau figures show that the country's trade surplus widened from $1.97 billion a year ago to $10.4 billion in July.
Exports rose 28.7 percent year on year to $65.58 billion last month while imports increased 12.7 percent to $55.18 billion.
US officials argue that Beijing's July 21 revaluation of the yuan does not go far enough and that
China's exporters therefore continue to benefit from an artificially weak currency.
China's trade relations with the US, the European Union (EU),
Turkey and
Brazil have become strained since Chinese companies are accused of selling some goods below cost. Some specific examples include textiles, steel pipes, air conditioners and DVD discs.
Economists expect
China's widening trade surplus to continue in the coming months due to the softening imports.