China’s Trade Growth Stir’s Currency Debate

As top leaders get ready to meet in Seoul at a global summit, the focus is most definitely on China’s ever-growing trade surplus which has grown to $US27.15 billion in October.

This is despite the fact that the previous month’s trade surplus was nowhere near as grand; in fact, it declined to just $US16.9 billion.

With this in mind, those at the head of the US’s finances and economy are continuing to pressurise China into changing the way they deal with their currency. The US is urging China to stop, what it essentially deems as ‘currency manipulation’ in order that the greater economy (global) is better supported.

The trade surplus even rose higher than top economists had predicted ($26.4 billion). When looking at the years data in comparison to the previous year’s, the increase in all areas is visibly significant. Whilst exports grew 22.9 per cent, imports rose by 25.3 per cent. Economists predictions hit a slightly slower estimation at just 23.0 per cent, leaving many speculating on just how China managed to hit such a high.

Brian Jackson an economist from Royal Bank of Canada, commented:

“Chinese exports and imports are both continuing to record impressive growth, defying concerns about weaker demand both home and abroad. But the disparity in global trade balances is the key point that will likely attract attention as senior officials fly in to Seoul for the G20 meeting.”

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