Surplus continued to grow in January

Exports and imports grew to $109.7 billion (26.7 percent) and $90.2 billion (27.5 percent) in January. This is the first time since April 2007 that China has the trade gap less than $20 billion. Although economists fear of a recession in the United States, China is still predicting a large surplus with the United States.  

Chinese leaders have reduced exports of food to increase domestic supplies and ease inflation due to food shortages. Additionally, Strauss-Kahn urged Chinese leaders to reduce surplus through the currency controls, which the country’s yuan has been undervalued. He said “More domestic demand growth will be what China needs, not export-driven growth.”