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Last Updated: Monday, 12 November 2007, 09:40 GMT
China trade surplus at fresh high
Yuan banknotes
The record trade surplus may increase calls for currency reform
China's trade surplus climbed to a new record in October, according to official figures.

The country saw a $27bn (�12.9bn) trade surplus for the month, marking a 13.6% rise compared with the previous month.

The trade surplus for the first ten months of 2007 rose 59% to $212.4bn, exceeding 2006's $177.5bn total.

The figures - though lower than forecast - come as calls for China to reform its currency increase, from those who say it is artificially weak.

Critics - especially in the US - say that allowing the yuan to remain weak means other exporters are harmed.

Export slowdown

"The record high trade surplus will definitely increase US pressure to raise the yuan's value," said Shi Lei, an analyst with TX Consulting.

China's trade surplus with the US added 12% to $15.7bn, figures from the General Administration of Customs showed.

Currency reform is one of the key topics that EU delegates will discuss later this month when they travel to meet Chinese leaders in Beijing.

China's total exports in October increased 22.3% year-on-year, while imports were up 25.5%.

But analysts say the trade gap might be reduced in months ahead.

"Export growth, I think, will continue to slow to below 20% in 2008 because US growth is slowing down and China has tried to control exports itself," said Paul Cavey with Macquarie Securities in Hong Kong.

SEE ALSO
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