China's trade surplus rises to high of almost five years


China's trade surplus increased to the highest level in nearly five years in November, rising to $33.8B from $31.1B in October and easily topping consensus of $21.7B.

Exports climbed 12.7% on year vs +5.6% in October and exceeding forecasts of +7.1%.

Imports grew 5.3% vs +7.6% and +7.2%.

Exports to Europe +18.4% and to the U.S. +17.7%.

"There are signs that the global activity and trade cycle is gaining momentum, driven by the recovery in high income countries, and China's exporters are benefiting from that," says RBS economist Louis Kuijs.

The data is the first in a number of reports due out this week, including inflation, industrial production and retail sales. (PR - use Google to translate)

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Comments (1)
  • Moon Kil Woong
    , contributor
    Comments (13372) | Send Message
     
    It's sad to see the US recovery just spurs more excessive spending fueled by the trade deficit. Even after 2007 the US government's actions and those of the Federal Reserve refuse to address a morally devoid and broken banking sector, out of control government spending, consumption habits that result in negative savings rates, education and infrastructure not built to address the future needs, and the need for higher quality education, increased productivity, and systemic change not just paying higher salaries to people so they can buy more.

     

    At the rate the US increases its trade deficit, China can never increase US consumption enough to catch up, this is partially because buying things like apple iPhones helps China that makes them more than the US. In the end the US needs more factors of production just like Adam Smith would prescribe and that probably means automation or lower not higher unskilled labor salaries. If not, market forces will continue the long term devaluation of our currency until everyone has a lower wage. The US also needs a massive cut in binge spending and an increase in infrastructure spending.

     

    The first thing I see is the US needs high speed Internet accessible to all. the second is it needs to revitalize its transit system that's falling apart. Unfortunately, that means you must deal with government construction and unions which are, rather than the most efficient due to economies of scale, are instead the most inefficient and costly due to unionized labor and regulatory red tape. Last we need to create simple laws that can't be broken like Glass-Stegall not badly made laws like Dodd-Frank that create giant loopholes for abuse and tons of money to regulate badly which cost $100s of dollars for companies to comply with.

     

    8 Dec 2013, 11:57 PM Reply Like
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