Economy

China expects big fall in trade surplus this year

(Xinhua)
Updated: 2010-06-12 21:16

BEIJING - China's trade surplus would likely fall noticeably this year as exports outlook would not be optimistic while imports would remain robust, Ministry of Commerce spokesman Yao Jian said at a briefing Saturday.

Exports growth would slow after July, Yao forecast, adding the surge in exports in May was due to a low comparison basis last year. China's exports in May surged 48.5 percent year-on-year, customs data released Thursday.

Related readings:  Trade surplus set to widen in May  China says trade surplus to fall sharply in 2010  Trade surplus plunges, easing pressure on yuan  China's trade surplus hits $1.68b, down sharply in April

China's trade surplus in the first five months fell 59.9 percent to $35.39 billion. The figure in 2009 topped $196.07 billion, down 34.2 percent year-on-year.

Yao attributed the weak export outlook to the European sovereign debt crisis, rising commodity prices and labor costs.

"In the following months, the fallout from the debt crisis in Europe would gradually become apparent, and China would closely watch changes in its important exports markets including Germany, Spain and Italy," Yao said.

China would maintain stable trade policies amid the crisis, and might adjust some policies in some specific industries for environmental protection purposes.

"Stable trade policies are a top priority when the external outlook is not clear," he said.

Yao also told reporters that attempts by some US lawmakers to include China's exchange rate policy into trade investigations on China's exports of aluminum extrusions and coated paper lacked factual support and did not conform to rules of the World Trade Organization.

The WTO regulated trade policies instead of a country's overall financial or foreign exchange policies, he said.