China’s trade surplus was US$20.02 billion in June, the highest level in eight months, Bloomberg reported. The month’s increases came largely thanks to surging exports, which were up 43.9% year on year. Even so, customs officials were quick to warn that troubles in the Eurozone had begun to affect Chinese exports to the region. Furthermore, weakened US demand, increased wages, and reduced export tax rebates will further erode the competitiveness of Chinese exports, said Shen Jianguang, Hong Kong-based economist at Mizuho Securities Asia. "The government may have to intensify efforts to boost the domestic economy as they have limited control over external demand," he said. International pressure on China to allow the yuan to appreciate is expected to increase.
You must log in to post a comment.