China's trade surplus widens to US$13.05b in May
2011-06-10 12:31:43
China's politically sensitive trade surplus expanded to US$13.05 billion in May from the previous month as the value of exports hit a new record high, government data showed Friday.
The trade surplus -- a major bugbear for China's key trade partners, the United States and Europe -- was bigger than the US$11.4 billion recorded in April but sharply lower than a Dow Jones Newswires forecast for US$18.6 billion.
Exports growth slowed last month, rising 19.4 per cent year-on-year to US$157.16 billion -- but still a record high for a single month based on previous data -- customs authorities said in a statement.
Imports gathered pace, soaring 28.4 per cent from a year earlier to US$144.11 billion.
In April, exports rose 29.9 per cent to US$155.7 billion while imports increased 21.8 per cent to US$144.3 billion.
The stronger than expected increase in imports could help ease concerns that the world's second largest economy is slowing down.
Beijing has been pulling on a variety of levers to cool the economy, which grew 9.7 per cent in the first quarter, as stability-obsessed leaders fret that high inflation and soaring house prices could trigger social unrest.
There are growing signs the measures are bearing fruit -- China's manufacturing activity expanded at the slowest pace in 10 months in May and year-on-year auto sales fell in May for the second straight month.
Analysts have played down concerns about a potential hard landing for the Asian powerhouse due to persistent government efforts to stem a flood of credit into the economy and tame inflation, which is hovering above five percent.
"This is still just a moderation rather than a meltdown in growth so there is no need to worry about over-tightening," HSBC China economist Qu Hongbin said earlier this month.
"Beijing is likely to keep tightening mainly through reserve ratio and rate hikes in the coming months."
China has already hiked interest rates and increased the amount of money banks must keep in reserve numerous times in recent months -- yet inflation has gathered pace.