China Economy: Trade surplus shrinks10 January, 2011, 22:22. Posted by Zarathustra
Tags: Economy, Trade
China reported a smaller-than-expected trade surplus. Trade surplus was $13.1 billion vs. the consensus of $20.8 billion. Both exports and imports rose in December, but as in previous months, imports increase faster than exports, giving a smaller trade surplus number.
Optimists will say this is a good sign as China restructures its economy into more domestic consumption driven. Sceptics will say that… well, this number might not be true anyway. It will certainly give some edge for the Chinese President Hu Jintao ahead of his meeting with President Obama, as it will make it harder for Obama to press on strong Chinese Yuan.
And now, you understand why the Chinese pledged to buy peripheral Eurozone debts. It is both for saving their friends in Europe and saving themselves, as it will keep demand for their exports alive.
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