China's Trade Surplus Narrows

[alp227]

Source: The Wall Street Journal

BEIJING –China's trade surplus narrowed in August on surging imports, a positive sign for the global economy as it indicates that Chinese demand remains strong.

The surplus fell to $17.8 billion in August from $31.5 billion in July, and was well below expectations for a $23.4 billion surplus in an earlier Dow Jones poll of economists.

Imports grew rapidly, rising 30.2% in August from a year earlier, data from the General Administration of Customs showed Saturday. That was up from the 22.9% rise in July and higher than economists' median forecast for a 21.0% increase.

Resilient Chinese demand for imports is likely to be a welcome development for international markets, which have come to depend on China as an engine of global growth.

Read more: http://online.wsj.com/article/SB10001424053111903285704576561682527562822.html

[russspeakeasy]

1. A bullshit article published by the Chinese Chamber of Commerce.

:nuke:

[pampango]

2. AFP: China's August trade surplus tumbles to $17.8bn

http://www.google.com/hostednews/afp/article/ALeqM5jKHk1zrDDeJFqcgfukCJLTyBUJcQ?docId=CNG.0bbff34e77560278febb22b9d9d182a8.401

August imports hit a record high of $155.6bn, up 30.2 per cent over a year earlier and overshooting expectations for 21.5 per cent. That produced a trade surplus of $17.8bn in August, down 43 per cent from in July and the first time it had narrowed in six months. “Strong import growth is driven by China’s strong demand for consumer goods, luxury items, iron ore, crude oil, soy as well as corn,” he said.

In the first eight months of the year, Chinese trade with the European Union was worth $372.1 billion, up 21.8 percent year on year, while in second place trade with the US rose 17.8 percent to $285.6 billion.

Exports to the United States grew 12.5 per cent in August from a year earlier, quickening from July’s 9.5 per cent, while growth of exports to Europe was steady at 22.3 per cent. North America and Europe have generated less than 40 per cent of China’s overseas sales this year, down from 55 per cent in 2002

Annual growth of Chinese exports to Russia and Brazil both exceeded 38 per cent in August, while sales to Indonesia, Vietnam, Thailand, Saudi Arabia and Mexico topped 35 per cent, according to the customs agency. Chinese exporters have tried to expand their market shares in developed economies and diversify into fast-growing emerging markets, though they face increased challenges from rising costs and a firmer yuan.

[Left Coast2020]

3. It is BS.

Although I would be skeptical if there was a report claiming exports from U.S. increased. There is so much red tape that Beijing puts companies through to sell in China. When I was working there--just this year, I met a guy from Australia at a bar who was trying to sell Australian wines there. I remember him telling me "it is such a complicated process to do business there". Government officials were comfortable with just letting this guy's containers sit on the dock--while his wine goes bad in the process. Thats why I call China "The Peoples Republic of Complicated". The people want our products, but the government drags its feet discouraging everyone who trys to sell there. The Chinese people love our Snickers Bars (specifically the kids). They love our food. They love the NBA. They love our universities. And oh, this tidbit. With what products from here that are in China, they are much more expensive than Chinese products. But to find some things that remind you of home, you can go to a store called "Metro". Its like a Costco or Sams Club, but not as large as the stores here. :patriot: