China’s trade surplus with the rest of world soared to a record $26.9 billion (£13.4 billion) in June in a move that threatens to fuel further political tensions with the United States.
The trade surplus — nearly $1 billion a day — and 85 per cent higher than a year ago, far higher than expected, comes amid mounting concern in America that China is using an undervalued yuan to boost exports, in turn affecting US jobs.
A group of US senators are already seeking legislation to let US firms petition for steeper anti-dumping duties against countries that keep their currencies undervalued.
There are also growing claims in the US that China is selling unsafe goods, such as tainted toothpaste and lead-painted toys, denied by Chinese officials.
China’s surplus with the US was $14.1 billion in June and $73.9 billion for the first six months of the year.
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The yuan has strengthened 9.1 per cent since a fixed exchange rate ended in June 2005 but experts believe it is still undervalued by about 40 per cent.
Wang Qing, the chief China economist at Morgan Stanley, told Bloomberg: “This doesn’t help at all to reduce tensions with the US. China is going to have to do more to reduce the surplus.”
The overall value of China’s exports worldwide surged 27 per cent to a record $103.27 billion in June, more than the annual economic output of New Zealand.
Imports rose 14 per cent to $76.4 billion.
Economists said that the export figure was likely to have been buoyed by Chinese firms rushing to agree deals before cuts to export tax rebates took effect at the start of July.
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China’s trade gap with Europe was $10.9 billion last month and $57.4 billion for the first half of the year.