China's trade surplus reaches record high

But Chinese exporters will find it increasingly difficult to maintain the growth even without a stronger yuan, because the country’s manufacturing workforce is shrinking and getting more expensive.

To many developed economies’ annoyance, China’s trade surplus soared to a record high in July supported by solid growth in exports and modest imports during the month. This is likely to reignite the hot debate over China’s foreign exchange policies and increase resentment towards Chinese exporters who are believed to prosper thanks to the country’s undervalued currency, the yuan, and abundant cheap labour.

China's trade surplus jumped to $28.7 billion last month, the highest since January 2009. Exports increased 38.1% year-on-year to $145.5 billion and imports grew 22.7% year-on-year to $116.8 billion, the General Administration of Customs of the PRC announced on its website yesterday. The export growth is higher than...

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