China trade surplus falls to six year low

[alp227]

Leslie Hook, Financial Times

China’s overall trade surplus last year fell to $155bn, its lowest level since 2005, underscoring how slowing global growth and rising Chinese demand are reshaping the country’s economy.

The falling trade surplus could ease pressure on China to accelerate the appreciation of the renminbi, in a year when US election politics have turned up the rhetoric over Chinese trade policies.

US Treasury secretary Tim Geithner arrives in Beijing on Tuesday for a two-day visit to discuss trade and economic issues, and he is also expected to press for Chinese co-operation on recent US sanctions on Iranian oil transactions.

China’s trade surplus shrank last year as imports grew faster than exports, partly due to Beijing’s growing purchases of commodities like iron ore and crude oil.

full: http://liveweb.archive.org/http://www.ft.com/cms/s/0/e4611332-3b42-11e1-be4b-00144feabdc0.html

(adding the liveweb.archive.org part evades the paywall)

[FreakinDJ]

1. So China is buying Alaskan Crude Oil

Drill Baby Drill

[DCBob]

2. China's economy is highly dependent on a huge trade surplus.

This trend is likely to continue for quite some time. They also have a real estate bubble about to bust. Could be a tough year for the Chinese.