MercoPress. South Atlantic News Agency

China trade surplus hits new record in August: 28.7 b. USD

China's trade surplus hit a monthly record of 28.7 billion US dollars in August, despite weaker world demand. Other official data showed consumer inflation in the month decreased considerably to a 14 month low of 4.9%.

China's global trade gap for August was 14.9% wider than the same month in 2007, official state data showed. Exports rose 21.1% to 134.9 billion, while imports were up 23.1% to 106.18 billion, according to the Customs agency release. Inflation on the other hand dropped to 4.9% from 6.3% in July, the lowest reading since 4.4% in June 2007 and below economists' expectations. High inflation was initially blamed on shortages of grain and pork but later spread to other food. Beijing counteracted raising interest rates, imposed price controls on basic food items and paid farmers to raise production. The previous trade surplus record was 27 billion in October 2007. China's trade surplus with the US rose 16.6% to 17.5 billion in August and the gap with the 27-member European Union, China's biggest trading partner, increased by 25% to 16 billion. The data is likely to add fresh pressure on China to revalue its currency, as its trade partners have claimed that an artificially low Yuan is giving its exporters an unfair advantage. In the first eight months of 2008, China's trade surplus was 152 billion, down 6.2% from the same period of 2007.