China's trade surplus falls to 6-year low

BEIJING: China's trade surplus fell to a six-year low at USD 155 billion in 2011 amid shrinking exports market, even as its foreign trade surged by 22.5 per cent to hit an all-time high of USD 3.64 trillion.

The annual trade surplus narrowed to 14.5 per cent year-on-year to USD 155.14 billion in 2011.

The foreign trade, however, registered 22.5 per cent growth year-on-year to hit an all-time high of USD 3.64 trillion, General Administration of Customs (GAC) said today.

China is the world's second-largest importer and is expected to become the top importer in 2-3 years and contribute to global economic recovery, a senior research fellow from the Center for US-China Relations, Tsinghua University, Zhou Shijian said.

Weakening demand for exports because of the Eurozone debt crisis and a sluggish US economy have weighed heavily on the Chinese economy. Its GDP growth slowed to 9.1 per cent in the third quarter of 2011, from 9.5 per cent in the second quarter and 9.7 per cent in the first quarter.

The GAC data showed China's trade with emerging economies greatly outpaced last year's average growth, with its trade with Brazil, Russia and South Africa rising by 34.5 per cent, 42.7 per cent and 76.7 per cent, respectively, it said.

The European Union (EU) remained China's top trading partner, with bilateral trade amounting to USD 567.21 billion up 18.3 per cent year-on-year. China's trade with the United States, the country's No 2 trading partner, rose 15. 9 per cent from a year ago to USD 446.65 billion.

A free trade area arrangement between China and the Association of Southeast Asian Nations (ASEAN) continued to boost China-ASEAN trade, which rose by 23.9 per cent year-on-year to USD 362.85 billion.