China’s 2010 ‘lowered trade surplus’ trend to continue in first half of 2011

BEIJING - Chinese economists have claimed that the country’s trade surplus had narrowed in 2010 for the second straight year, and the trend is reportedly expected to continue for the first half of 2011, said.

The China Daily quoted figures released by the General Administration of Customs as saying that rising domestic demand helps cut trade surplus the trade surplus for 2010 totalled 183.1 billion dollars, down 6.4 percent from a year earlier.

The revelation has come just a week before President Hu Jintao’s visit to the United States and shows that China is rebalancing its economy toward greater domestic consumption and boosting the world economy with a greater demand for imports.

Economists further claimed that the balance of trade and Yuan appreciation would top discussions between China and its trade partners including the US.

“China is going through a transition from an export-driven economy to one driven by domestic demand,” the paper quoted Ted Dean, chairman of the American Chamber of Commerce in China, as saying.

“It’s important, necessary and happening,” Dean said, adding that the changing growth model would provide greater opportunities for US companies in China.

As the growth in imports outpaced exports, the country’s trade surplus in December was 13.1 billion dollars, an eight-month low. Imports increased by 25.6 percent in December, and exports grew 17.9 percent year-on-year.

Chang Jian, an analyst at Barclays Capital, said that China’s export growth is expected to slow to 17 percent in 2011 with import growth at 19 percent.

China’s overall foreign trade last year jumped 34.7 percent from 2009 to 2.97 trillion dollars. (ANI)