China's Trade Surplus Dwindles as World Economy Weakens

For more news visit ☛ http://english.ntdtv.com Follow us on Twitter ☛ http://twitter.com/NTDTelevision Follow us on Facebook ☛ http://me.lt/9P8MUn China's trade surplus has dwindled for a second month in September to $14.5 billion, down from nearly $18 billion in August. That's less than 50 percent of July's trade surplus. The latest trade statistics indicate the Chinese regime is feeling the pinch from the economic woes in Europe and the United States. China's trade surplus has dwindled for a second month in September to $14.5-billion. It's lower than the $17.8-billion in August and less than half of July's figure recorded at $31.5-billion. Trade statistics released on Thursday came in the midst of the Chinese regime's furor over the US currency bill and pressure for a higher yuan—or renminbi. The regime's policy of undervaluing the renminbi has made Chinese exports cheaper—giving it a hefty trade advantage over competitors. Chinese Customs Administration Deputy Head Lu Peijun says the higher yuan is already hurting Chinese exports—and limiting the room for export growth. Chinese exports to Europe have fallen to its lowest since June—at less than half of the total for August. Reuters reported a fall in both Chinese imports and exports—with some analysts saying no recovery is in sight. This trend reflects a weakening world economy and domestic demand that will heighten difficulties for Chinese regime policy makers. A Pingan Securities analyst Shi Lei says, "It's now certain that external demand is falling." He expects export growth to remain sluggish for the rest of this year. Shi says it's unlikely for any easing of the monetary policy unless there's an obvious fall in inflation rate, which remains at 6.2-percent for August. He states the opportunity for any policy easing may happen in November or December. Other analysts believe the dwindling trade surplus will ease the yuan appreciation trend and hence relieve the US pressure on the Chinese yuan. China's overall balance of trade with the United States stayed the same for August and September—at a surplus of $20-billion. With the European Union, the Chinese trade surplus fell from $14.8-billion in August to $12.9 billion in September.