China Tariffs, China Trade Surplus, Chinese Customs, Chinese Goods, exports, Global Growth, Trade Gap, Trade Surplus
China Tariffs, China Trade Surplus, Chinese Customs, Chinese Goods, exports, Global Growth, Trade Gap, Trade Surplus

China January Trade Surplus Up 22.7 Pct

JOE McDONALD | February 15, 2008 06:36 AM EST | AP

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BEIJING — China's trade surplus grew by 22.7 percent in January over the same month last year as foreign demand for exports stayed strong despite worries about slowing global growth, according to data reported Friday.

The latest figures appeared likely to fuel demands by China's trading partners for action on trade barriers and currency controls. Some American lawmakers are calling for punitive tariffs on Chinese goods if Beijing fails to act quickly.

January's trade gap totaled $19.5 billion, the government's Xinhua News Agency said, citing data from the Chinese customs agency.

Exports in January rose 26.7 percent to $109.7 billion, while imports grew by 27.6 percent to $90.2 billion, according to Xinhua.

But compared to previous months, the surplus shrank. It was the first time since April that China reported a monthly trade gap below $20 billion. In December, it totaled $22.7 billion, and in October it reached an monthly record of $27 billion.

China has continued to rack up multibillion-dollar monthly surpluses despite government efforts to rein in exports of steel, plastics and other goods that it deems too dirty or energy-intensive.

Economists say a slowing American economy might cut demand for Chinese goods slightly, but they still expect China to continue to run a large surplus with the United States.

Friday's trade data suggested that China could expect strong growth this year despite a possible slowdown in the United States, a key export market.

The managing director of the International Monetary Fund said Friday that China might be affected by a U.S. slowdown but its economy still should expand by about 10 percent this year. That would be down from 11.4 percent growth in 2007.

"While we are experiencing a decrease in growth in advanced economies, it is even more necessary than before to have a high level of growth in China," said Dominique Strauss-Kahn, who was in Beijing for meetings with Chinese leaders.

Beijing also has tried to rein in exports of wheat and other grains in order to increase domestic supplies and cool an inflation spike blamed on shortages of pork and grain.

Chinese leaders say they are not actively pursuing large surpluses.

The multibillion-dollar influx of export revenues has strained Beijing's ability to restrain pressure for prices to rise. The central bank drains billions of dollars a month from the economy through bond sales and has piled up $1.53 trillion in reserves.

No monthly figures on China's trade with the United States or other individual partners were immediately reported.

On Thursday, the U.S. Commerce Department said the annual U.S. trade deficit with China rose by 10.2 percent in 2007 to a new all-time high of $256.3 billion. Trade figures in the U.S. and China are calculated differently.

Critics of China's trade record are pushing Beijing to ease barriers to imports and currency controls that they say keeps the country's yuan undervalued. They say that gives China's exporters an unfair advantage and adds to its surpluses.

Strauss-Kahn said he urged Chinese leaders to ease currency controls, saying a more flexible exchange rate would help to achieve their goal of reducing reliance on exports.

"More domestic demand growth will be what China needs, not export-driven growth," he told reporters.

Pressure on China for action is expected to increase as the American presidential election campaign progresses, with the Democrats arguing that the U.S. trade deficit with China has contributed to the loss of more than 3 million manufacturing jobs since 2000.

China says its trade surplus with the world last year rose 47.4 percent to $262.2 billion.

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The headline, "China's trade surplus up 22.7%" should be amended to read:

"China's trade surplus up 22.7% at our expense."

    Favorite    Flag as abusive Posted 11:49 AM on 02/16/2008
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I want a lovely pink umbrella.

*

    Favorite    Flag as abusive Posted 10:09 PM on 02/15/2008
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Yes, it's so complimentary against the gray pollution.

    Favorite    Flag as abusive Posted 07:10 AM on 02/16/2008

Here's where it starts to get interesting. The WTO slapped them earlier this week on of all things, autoparts. Seems they've been "illegally" banning them from import- which is very funny seeing how more and more car parts are FROM China...

So, how much do you want to bet that some countries start to sanction them? Its not like that's going to be "unpopular" with the masses!

If I had my way, I'd literally fuck them. 100% tariffs on all finished goods coming out of China, unless they permit total freedom of all trade. It really is that simple; and make sure that they comply with all environmental and human rights' issues, or keep the 100% tariff on EVERYTHING that goes out. And if they threaten anything with our currency, freeze all assets.

Play hardball with the communists.

    Favorite    Flag as abusive Posted 08:46 PM on 02/15/2008

Know how much Chinese freight forwarders make on those ocean container shipments? About USD $20 per 40' container. Volume, baby. If I could only make $20 per container, I'd go out of business.

The Chinese provide loans to their various state and non-state owned enterprises that essentially never have to be repaid, and they do so with a monetary policy that grows the money supply by some 18% per year, yet there is almost no inflation.

    Favorite    Flag as abusive Posted 04:25 PM on 02/15/2008

...which "ISM" are we supposed to be affraid of again?


is it communisim or facism oh wait I got it, its terrorism.

oh ok i see.

    Favorite    Flag as abusive Posted 11:33 AM on 02/15/2008
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The time to worry about communism is over.

China won.

They own us now.

If Reagan were here, I'd laugh in his face.

*

    Favorite    Flag as abusive Posted 10:08 PM on 02/15/2008

I wouldn't say that...

80% of China is living on less than $2/day. Their infrastructure is still third-world, and they've had massive power cuts this week, because get this, they CAN'T AFFORD COAL. The don't own us, they SERVE us. They slave to build our crap, and they've almost totally destroyed their environment to do it. The sun is gone from much of China, the air too thick to breath. They've got over 100 billionaires, mostly communist party leaders who've acted like the worst capitalist exploiters the world has ever seen. They have billions, while most of China hasn't been inside of a car, and hasn't ever used a phone.

They've won abject misery and a poisoned future for their children.

    Favorite    Flag as abusive Posted 10:17 PM on 02/15/2008
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Which is easy to do when you have all that non-union slave labour.

C'mon Americans, we can work more cheaply than they can.

(At least that's the republican solution.)

    Favorite    Flag as abusive Posted 10:19 AM on 02/15/2008
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Stop whining already. If you don't buy their junk then there will be no surplus. Hit'em where it hurts or STFU and stop begging.

    Favorite    Flag as abusive Posted 10:19 AM on 02/15/2008

BINGO!!! (and good luck finding anything made in the USA...)

    Favorite    Flag as abusive Posted 11:00 AM on 02/15/2008
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We'll just get more junk from Mexico. Isn't it a state of the union anyway?

    Favorite    Flag as abusive Posted 12:01 PM on 02/15/2008
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