China makes mockery of UK's woes as exporting grows by 46 per cent

Published on Wednesday 10 March 2010 20:32

IN STARK contrast to the economic woes on our doorstep, figures yesterday showed exports from China had grown by almost 46 per cent last month, writes Scott Reid.

The year-on-year increase was higher than analysts' expectations of a rise of between 35 and 40 per cent.

It is likely to boost hopes of a strong recovery in global trade, although some economists cautioned against over-interpreting the figures, skewed because of the timing of the Lunar New Year holiday.

China's imports also rose strongly, increasing by 44.7 per cent last month compared with a year earlier. The growth was helped by the government's economic stimulus programme.

China reported a trade surplus for February of $7.6 billion (5bn), compared with a bumper $14.2bn in January.

Economists had expected an $8bn surplus based on a 38.7 per cent rise in exports and a 39.7 per cent rise in imports from year-earlier levels.

The Chinese government has come under pressure to raise the value of the yuan, which the US in particular complains is undervalued.

Analysts at Barclays Capital in Hong Kong said: "We think the very strong headline export growth will help to address concerns on the negative effect of any currency appreciation from some domestic quarters.

"At the same time, strong domestic demand, as seen in import growth, suggests currency appreciation could play a role in the tightening effort and help to control aggregate demand, although any appreciation is likely to be modest."