China's April trade surplus $16.7 billion; down 1% amid weaker global demand

By: THE ASSOCIATED PRESS

BEIJING - China posted a $16.8 billion trade surplus in April, down about one per cent from the same month last year amid weaker global demand for Chinese goods.

According to government data reported today, china's surplus with Europe jumped by 34.8 per cent to $12 billion while that with the U.S. saw much slower growth, rising by four per cent to $13 billion.

April's trade gap was bigger than that in February or March but was well below monthly figures from last year that often exceeded $20 billion.

China's growing trade gap with the 27-nation European Union has prompted the EU to join Washington in lobbying Beijing to ease currency controls and import barriers.

The sharp growth in Chinese exports to Europe is due in part to the rise in the euro against China's currency, the yuan, which makes Chinese goods less expensive for European consumers.

By contrast, the dollar has fallen against the yuan, making Chinese goods more expensive for U.S. consumers at a time when uncertainty about the economy has hurt retail spending.