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Exports deliver good news for economy

By Ding Qingfen (China Daily)
Updated: 2009-11-12 07:40

Thanks largely to the economic turnaround in the United States and Europe, exports from China declined more slowly in October, sending a strong signal that the recovery is gaining momentum.

Customs statistics indicate exports fell by 13.8 percent from their level a year ago. The total value of exports in October stood at $110.76 billion.

The decline in exports in September was 15.2 percent.

Imports decreased by 6.4 percent, to $86.78 billion during October. That followed a 3.5 percent decrease in September.

The changes meant the trade surplus in October increased to $23.99 billion, almost double the surplus in September.

"It's a positive signal suggesting the Chinese economy is recovering in a sustainable way," said Li Wei, from Standard Chartered.

According to the Commerce Department, the US economy grew by 3.5 percent during the third quarter - the first positive figure for the past year and an indication that the worst of the downturn is now over.

In addition, the Euro-zone Economic Outlook compiled by three major European economic researchers suggests the European economy will grow by 0.4 percent in the next quarter, bringing to an end a decline in Europe that has dragged on for four quarters.

But experts say the world is increasingly clamoring for an appreciation in the value of the yuan.

"Exporters around the world are pressuring policy makers to push for a stronger yuan," Alaistair Chan, an economist with Moody's Economy.com was quoted by Bloomberg as saying.

Li Jian, a senior researcher with the Trade Research Center of the Ministry of Commerce, agreed.

"The higher the surplus is, the stronger the call for revaluation," he said.

But Li from Standard Chartered said it is "unlikely that China will let the yuan appreciate in the near future because exports are still sluggish".

On Tuesday, a Foreign Ministry spokesperson reiterated China's position, saying it will ensure the yuan remains stable.

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