In a development that may again pressurise the US to pacify critics who are of the opinion that Beijing was keeping its currency Yuan unfairly “undervalued”, China's exports and its trade surplus again witnessed an upward surge in May. The imports, too, grew strongly.
In May, the exports and imports of China, which is the world's third-largest economy, rose 48.5% and 48.3%, respectively, as compared to the figures of the concurring period a year ago.
The increase ensured a trade surplus of $19.53 billion for China, the amount substantially up from a mere $1.7 billion in April, said the General Administration of Customs on Thursday.
But, an intriguing question that has been bothering some economists is would China be able to sustain the momentum, given the debt crisis haunting Europe, the country's biggest overseas market.
However, other experts feel that the latest development would only necessitate the need for a debate on a long-awaited resumption in the appreciation of the Chinese currency.
“It will support those who argue for a change in the policy, to the extent that it reduces near-term uncertainty about exports”, said Wensheng Peng, an Economist at Barclays Capital in Hong Kong.
Reform will be more about increasing two-way variations in the exchange rate, asserted Peng.
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