China's trade surplus up to $31.5b

China’s trade surplus leapt to US$31.5 billion in July – its highest level in over two years – thanks to surprisingly strong growth in exports, the Financial Times reported. The widening of the surplus is likely to intensify foreign criticism of China’s controlled exchange rate for the renminbi. Despite recently setting new records against the dollar, Alistair Thornton, an economist with IHS Global Insight in Beijing, said that the renminbi has “barely budged on a trade-weighted basis over the past year.” Beijing’s resolve to allow the renminbi to continue appreciating will be tested if slowing global growth, provoked by ongoing volatility in international stock markets, results in weaker demand for Chinese exports. Export orders are usually placed months in advance, so damage from a slowdown will probably not filter through until later in the year.