As usual China's economy is on fire, fueled by their exports. The China trade surplus was $28 billion.
China's July exports of $145.5 billion represented a 38% increase over July 2009, down from June's 44% increase. But growth in imports — which hit $116.8 billion — slowed even more dramatically, leading to the bulging surplus.
Most interesting is how this is downplayed in the U.S. press, for the obvious, confront China on currency manipulation is seemingly only a topic for sound bytes.
Note the different percentage quotes between USA today (above) and the China English newspaper. Both percentages are true but the U.S. press downplays the never ending global imbalance for it means the U.S. must act on currency manipulation as well as other unfair trade practices by China.
Latest statistics show that China's monthly trade surplus trumped almost all forecasts to hit an 18-month high, up 170 percent from a year earlier to $28.7 billion.
In view of the fragile global recovery, most observers believed China could hardly run an even larger monthly trade surplus than what it posted in June, a whopping $20 billion.
Nevertheless, Chinese exporters have managed to sell more last month while import growth has slowed in line with a looming domestic slowdown. On a monthly basis, China's exports in July were up 5.9 percent from June, but imports edged down 0.4 percent from the previous month.
With a trade surplus close to the largest China has ever seen and record overseas sales in July, Chinese exporters have shown impressive capacity to survive what is arguably the worst global recession in more than half a century.
It seems likely that the export sector will remain a powerful growth engine of the Chinese economy for many more years.