China's Exports are Like the Energizer Bunny, Trade Surplus Keeps Growing

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China Has $15.3 Billion Trade Surplus, Second-Biggest Ever; Exports Soar [Bloomberg]

Summary: China's trade surplus was $15.3 billion in September, the second-largest ever after reaching $18.8 billion in August. Year-to-date its total surplus is $110 billion or already more than all of last year. China's leaders acknowledge this is a problem and are struggling to find a solution to slow growth and how to allow the yuan appreciate. On Tuesday, a People's Bank of China policy committee member stated, "Yuan gains are needed to help resolve China's economic distortion." China now has nearly $1 trillion in foreign exchange reserves. Its exports grew 30.6%y-o-y last month versus 32.8% in August to set a new record at $91.8 billion. Imports grew 22% after rising 24.6% in August. An economist at Action Economics in Singapore comments, "This is a positive sign about global demand and that the world economy is still growing. It's consistent with the strong trade figures from South Korea and Taiwan."
Related links: The Paulson Effect: China Hawks in Senate May Delay Vote • Paulson Wants Even More Flexibility in Yuan • Beijing's Revised Export Tax Rebate Policy Boosts Stocks • China's Latest Attempt to Cut Its Trade Surplus • A Disconnect Between Beijing and Provincial Governments • China's Trade Surplus Widens; Potential Collaboration with U.S. in Oil Field Development • Stephen Roach on China and the Commodities Cyclical Bear Case • Feedback on the Chinese Bubble -- A Point-by-Point Refutation

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