MercoPress. South Atlantic News Agency

October record trade surplus for China

China's trade surplus jumped to a record 12 billion US dollars in October compared to 7,6 billion in September, reported Thursday China's Customs Office.

China's total surplus for the ten first months of 2005 now stands at 80,4 billion compared to the 32 billion of the whole of 2004.

Economists were forecasting a 9 billion October surplus compared to the 7,1 billion of the same month in 2004. October exports expanded 29,7% over a year ago and 25,9% over September.

Apparently Western Christmas retailing stocking was influential in the latest surplus rebound.

However analysts expect new pressures from United States on China for a further revaluation of the Chinese currency, Yuan, which it considers "undervalued" giving Chinese exports an unfair advantage. China revalued its currency last July by 2,1%.

This week President George Bush who is scheduled to visit Beijing called again on Beijing to allow the yuan to float freely.

United States accounts for approximately one quarter of China's trade surplus. China has long maintained that its eventual goal is currency liberalisation, but that this would only take place when the time was right so as not to destabilize its fast-paced, export-geared economy.