China trade surplus widens in April
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China's trade surplus widened in April, the customs agency said, as weak imports growth dulled the negative impact of poor exports caused by stagnation in Europe.
The country recorded a surplus of $18.42 billion in April -- much higher than economists' forecasts -- as imports edged up just 0.3 per cent year-on-year to $144.83 billion. Economists surveyed by Dow Jones Newswires had forecast a $10.4 billion surplus.
Exports growth slowed to 4.9 per cent year-on-year and reached $163.25 billion, as trade with the European Union, China's largest trading partner, grew a mere 0.3 per cent.
The slowdown in imports came amid a slowdown in China's economy, which grew just 8.1 per cent in the first quarter.
China has been easing credit restrictions on banks since late last year, hoping to boost lending and support demand, but economists do not expect growth to strengthen until the second half of the year.
Despite new exports orders picking up in this month's manufacturing activity data, analysts expect global trade to remain weak for the rest of the year.
"The very disappointing trade figures reported by Korea on 1 May were an indication of the pronounced weakness in the global trade system," said Yao Wei, economist for Societe Generale.
The trade data released Thursday should continue to ease ongoing tensions with the United States, which persistently argues that China keeps its currency artificially low to subsidise its cheap exports.
Last week US Treasury Secretary Timothy Geithner, in Beijing for annual economic talks between the two countries, called for China to continue to let its currency appreciate further.
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