China’s foreign trade on the rise, trade surplus on the decline
China’s foreign trade on the rise in 2010 leaping 34.7 percent over 2009 to $2.97 trillion. Its trade surplus was on the decline, dropping 6.4% to $183.1 billion. These figures came from the Chinese General Administration of Customs today.
Although world-wide, China’s trade balance numbers are down, the numbers with the US are still up by 26.4% This will undoubtedly come up during China President Hu Jingtao’s visit to the US January 18-21.
The US has been critical of China, claiming that it has been artificially keeping the value of its currency low. China will point out that the lower overall trade surplus numbers are proof that they are not employing mercantilistic policies.
Not all economists are convinced that China’s trade is balancing out as much as it says. “Fundamentally, China still has a very large structural trade surplus. That hasn’t changed,” said UBS economist Wang Tao in the Wall Street Journal.
Wang believes that much of the decline in the trade balance was attributed to raising prices for raw materials which will not continue into 2011.
China’s largest trading partner is the European Union, followed by the United States, Japan, and Asean nations.