MercoPress. South Atlantic News Agency

China becomes world's second exporter ahead of US

China overtook United States as the world's second exporter of goods in 2007, while Germany remains top of the ranking according to the latest data from the World Trade Organization, WYO.

Last year Germany exported 1.3 trillion US dollars and kept the leading position followed by China with 1.2 trillion --and growing-- and United States, which dropped to third place with 1.16 trillion. Other exporting countries include Japan with 713 billion US dollars; France 552 billion; Netherlands, 551 billion; Italy 492 billion; United Kingdom 436 billion; Belgium 432 billion and Canada, 418 billion US dollars. Regarding imports, the US was ahead in 2007 with 2.01 trillion US dollars, followed by Germany, 1.05 trillion and China 956 billion. The list follows with Japan, 621 billion; United Kingdom, 617 billion; France, 613 billion; Italy, 505 billion; Netherlands, 491 billion; Belgium, 496 billion and Canada 390 billion. In related news Chinese economy grew 10.6% in the first quarter of 2008, down from 11.7% a year ago. This would indicate that the Chinese economy has managed to survive almost unscathed the worst winter in half a century and the impact of subprime crisis in the United States, according to the latest data from the National Bureau of Statistics. But inflation continues to bedevil Chinese authorities with the Consumer Price Index for the first quarter gaining 8% from a year earlier, compared with a 2.7% rate in the same period in 2007. The CPI in March rose 8.3% year-on-year, well above the government's full-year inflation target of 4.8%, which National Bureau of Statistics (NBS) spokesman Li Xiaochao admitting it would be difficult, if not impossible, to meet. Even so, the March figure was down from an 11-year high of 8.7% in February. Shortly after the release of the first-quarter economic statistics, the People's Bank of China (PBoC), the country's central bank, said it would raise the reserve requirement ratio for commercial banks by 50 basis points to a record 16%, effective from April 25. "The rise, a further materialization of tight monetary policy, is aimed at strengthening liquidity management in the banking system and steering bank credit to grow reasonably," the PBoC said in a statement. The latest move follows increases in the reserve requirement on January 25 and again on March 25, on top of 10 such moves in 2007. It also raised interest rates six times last year. "An increase in the reserve ratio by a small margin will help to stabilize inflation expectations, while maintaining stable economic growth," Peng Xingyun, a finance researcher at the Chinese Academy of Social Sciences, told Xinhua news agency. Experts said that raising the reserve requirement was an easier option for the PBoC than an interest rate increase, as economic growth was slowing.