China's Monthly Trade Surplus May Top $30 Billion

China's monthly trade surplus probably topped $30 billion for the first time, adding fuel to U.S. complaints the yuan is undervalued.

The gap widened 29 percent in October from a year earlier to $30.8 billion, according to the median estimate of 14 economists surveyed by Bloomberg News. The government may release the figure as early as today.

U.S. Treasury Secretary Henry Paulson, due in Beijing next month for talks, said yesterday China is ``out of step'' with the rest of the world's calls to let the yuan appreciate. A plunge in the dollar to a record low against the euro adds pressure on China to allow faster gains to staunch a flood of cash that's stoking stock and property bubbles.

``Faster exchange-rate appreciation would be the best way to manage the excess liquidity,'' said Glenn Maguire, chief Asia economist at Societe Generale SA in Hong Kong. ``As we move into the U.S. election season, China's trade surplus will become a more sensitive political issue.''

Exports likely rose 22.8 percent in October from a year earlier, the same pace as in September, the Bloomberg News survey showed. Imports probably increased 19.2 percent after a 16.1 percent gain in the previous month.

The yuan had its biggest weekly advance against the dollar since July 2005, a 0.60 percent gain, to close at 7.4108. Faster yuan appreciation could reduce the inflow of money by making exports more expensive. The currency has gained 11.7 percent versus the dollar since a fixed exchange rate ended.

`` China is increasingly seen as out of step with international norms and expectations, as evidenced by the growing number of national leaders and multilateral institutions calling for currency appreciation,'' Paulson said in New York. China needs ``more flexible prices, including a much more flexible, market-driven exchange rate,'' he said.

China's central bank said last night in a monetary-policy report that it will ``strengthen the role of prices in managing the economy'' and improve the coordination of interest-rate and exchange-rate policies. It also said moderate currency appreciation may help to ease inflation pressures.

Consumer prices rose 6.2 percent in September from a year earlier, close to the fastest pace in a decade. The CSI 300 Index of stocks has climbed almost 150 percent this year, while property prices in the 70 biggest cities rose 8.2 percent in the third quarter from a year earlier.

French President Nicolas Sarkozy said this week that France and the U.S. agree China ought to stop depressing the value of the yuan to gain an export advantage.

The predicted October surplus would bring the 10-month total to a record $216.4 billion, up 62 percent from a year earlier. Export volumes are biggest in the final quarter because of Christmas shipments.

``The level of exports is so far above the level of imports that imports would have to grow considerably faster than exports just to stop the surplus growing any more,'' said Mark Williams, an economist at Capital Economics Ltd. in London. ``There is no sign that this is going to happen any time soon, so we can expect to see some more huge surpluses in coming months.''

The expected 29 percent growth in the surplus in October compares with a 56 percent gain in the previous month to almost $24 billion.

That suggests exporters are ``feeling the pinch'' from currency appreciation and government curbs such as cuts in export-tax rebates, according to a note from Sun Mingchun, an economist at Lehman Brothers Holdings Inc. in Hong Kong. ( Bloomberg )

Various results achieved in Vienna every day – Iran’s MFA
Various results achieved in Vienna every day – Iran’s MFA
Registration of presidential candidates starts in Iran
Registration of presidential candidates starts in Iran
Iran, Saudi Arabia conduct both bilateral, regional talks – Iran's MFA
Iran, Saudi Arabia conduct both bilateral, regional talks – Iran's MFA
Loading Bars
Latest
Сompetition season of 2021 successfully started - European Gymnastics President
Identification of victims in Kazan school shooting completed
26 COVID-19 patients dead allegedly due to oxygen shortage in India's Goa
Japan's COVID-19 patients in "serious condition" hit fresh record high
Azerbaijani president, first lady express condolences to president of Tatarstan
President Aliyev expresses condolences to Russian counterpart
Iran's Energy Exchange announces products to be on sale on May 12
Bahar Azadi gold coin price continues to rise in Iran
Foreign investors waiting for decision related to FATF in Iran – official
Azerbaijani journalists view State Border Service's Military Hospital in liberated Gubadly (PHOTO)
Demand for OPEC crude in 2021 revised up
Turkish export of electrical goods to Azerbaijan drops
Shares of Kazakhstan's KAZ Minerals delisted from stock exchange
Export Development Bank of Iran to provide loans to startup companies
Data on cargo shipment through Turkish Kocaeli port over 1Q2021 revealed
Kazakhstan reports increase in new housing prices
Azerbaijan's ADIF continues compensating depositors of closed banks
Turkey sees increase in cement exports to Georgia
Cargo movements in Iran’s Shahid Rajaee port increase
OPEC marks increase in Baku-Tbilisi-Ceyhan oil exports
Guaranteed wheat purchasing from farmers in Iran continues
Iran to inaugurate new airport in Kurdistan Province
Iran to build new factory at Amirabad port
OPEC revises up forecasts for Azerbaijan’s liquids supplies in 2021
Azerbaijan reveals number of vaccinated citizens for May 11
Azerbaijan confirms 514 more COVID-19 cases, 1,306 recoveries
Iran reveals COVID-19 data for May 11
Iran’s PMO unveils volume of cargo transportation via Abadan Port
Iran shares unemployment data
Georgia export to Germany increased by 40%
Uzbekistan, Kyrgyzstan eye accelerating implementation of roadmap for industrial co-op
FDA to attract funds to support reforms in Uzbekistan
Uzbek-Chinese JV opens tender for spares for gas pumping units
Iran starts mass production of coronavirus vaccine
Russia boosts steel imports from Turkey
Volume of cargo shipment via Turkish Karabiga port in 1Q2021 revealed
Renewables to account for 90% of total global power capacity increases in 2021-2022
Annual renewable capacity additions reach highest level since 1999
Oil dips as pipeline outage fears ease, India weighs
First batch of Sputnik V vaccine arrived in Azerbaijan just a few days ago, more significant shipments expected later this month - Russian FM
Statements reeking of revanchism, are very dangerous, first of all for Armenian side - President Aliyev
Restriction on movement likely to ease in late May in Georgia
Since end of hostilities, we transferred all prisoners of war - President Aliyev
Azerbaijan shows goodwill in matters related to humanitarian issues - President Aliyev
Post-conflict situation, of course, dictates need for closer contacts at all levels - President Aliyev
Heroization of Nazism in all its forms - unacceptable - Azerbaijan FM
Gaza escalation weighs on shekel
Issue of unblocking transport in region must be prioritized - Azerbaijani FM
Humanitarian issues must be resolved as quickly as possible - Russian FM
Russian FM notes key factor in normalizing situation in Karabakh
Russia highly appreciates work of trilateral group of deputy prime ministers of three countries - Russian FM
Azerbaijan committed to fulfilling its obligations under trilateral agreement - Azerbaijani FM
Nine killed in Kazan school shooting
Second batch of Sputnik V vaccine to be delivered to Azerbaijan by late May - Russian FM
FMs of Azerbaijan, Russia sign plan of consultations for 2021-2022 (PHOTO)
Azerbaijan condemns all terror acts - Azerbaijani FM
Uzbekistan reveals number of vaccinated people
Uzbekistan considers attracting French companies to partake in state assets privatization
Uzbekistan signs memorandum of understanding with French Rothschild & Cie
Uzbekistan reveals numbers of companies with dominant position in market
Uzbekistan taking measures to improve availability of public services
Iran and India trade declines due to COVID-19
Azerbaijani president congratulates Azerbaijani people on Ramadan holiday
Armenian railways are owned by Russian railways, therefore, we are discussing issue mainly with Russian side - President Aliyev
Indian Army sets up 100-bedded hospitals in Faridabad, Chandigarh, Patiala
Indian FY22 growth may slip to 8.2%: Crisil
Twitter Donates $15 Million For COVID-19 Relief In India
President Ilham Aliyev criticizes statements of Canada's, France's MFAs: Let them mind their own business
Startups fight COVID-19: How healthtech startup Meddo is helping tackle the hospital bed crisis
Outpouring of support from US for India, Covid-19 help touches USD half a billion
Zangazur corridor must and will be opened - President Aliyev
PFPA-Musavat duo mobilized all their resources to overthrow Heydar Aliyev in Nakhchivan - President Aliyev
This visit to Nakhchivan has great symbolic meaning - President Aliyev
President Aliyev warns revanchists in Armenia: They shouldn’t play with fire
Military equipment available to Nakhchivan Army today probably superior to equipment of some advanced countries - President Aliyev
Russian FM visits tomb of National Leader Heydar Aliyev
There is no territorial unit called Nagorno-Karabakh in Azerbaijan - President Aliyev
Iran and Serbia plan to develop trade ties
Azerbaijani, Russian delegations holding meeting in expanded composition
Value of exports from Azerbaijan to UK soars
FMs of Azerbaijan, Russia begin one-on-one meeting
Queen Elizabeth to set out UK government's post-pandemic agenda
Uzbek-Chinese JV opens tender for calibration of ultrasonic flowmeters
Australia's Victoria on alert after first COVID-19 case in two months
Central Bank of Azerbaijan makes allocations to support credit register system
Kazakhstan sees increase in trade with Iran despite COVID-19
Kazakhstan boosts exports to Georgia multifold
Turkey reveals 1Q2021 data on cargo movement via local ports from Russia
Baku welcomes UNESCO mission to assess cultural heritage of Karabakh - Azerbaijani MFA
Iranian currency rates for May 11
Kazakhstan’s Intergas Central Asia company opens tender for feasibility study dev't
TAP to open tender for purchase of gas for fuelling compressor stations
UN says Europe needs more efficient mechanisms to handle migrant arrivals
Amazon raises $1 billion sustainable bond for climate
Latest prices for Azerbaijani oil disclosed
Azerbaijan boosts import of coffee, tea
SOCAR’s Petkim extends time of repaying receivables
Central Bank of Azerbaijan releases 1Q2021 net external assets of local commercial banks
Uzbekistan reveals COVID-19 data for May 11
Turkey unveils volume of goods handled through Bandirma port in 1Q2021
All news