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Economy

China's imports quicken, exports slow in May

(Xinhua)
Updated: 2011-06-10 16:01
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BEIJING -- China's imports grew faster than expected in May, indicating the world's second largest economy's appetite for commodities remains strong.

Imports jumped 28.4 percent year on year to $144.11 billion in May, up from April's 21.8 percent increase, the General Administration of Customs (GAC) said on Friday.

Imports of iron ore jumped 8.1 percent to 280 million tons through Jan-May, while that of the crude oil increased 11.3 percent to 106.51 million tons.

Exports rose 19.4 percent from a year ago to $157.16 billion, down from April's 29.9 percent growth.

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The trade surplus climbed in May to $13.05 billion from $11.43 billion in April.

In the first five months, trade surplus decreased 35.1 percent year-on-year to $22.97 billion.

A commerce ministry official said the data suggested the nation's foreign trade was trending upwards, but conditions were complicated by high unemployment in the United States and European countries and political volatility in North Africa and the Middle East.

The Chinese government has managed to cool the economy, as fights to contain inflation.

The Purchasing Managers Index (PMI) of the manufacturing sector, which measures manufacturing activities, dropped 0.9 percentage points month-on-month to 52 percent in May, falling to a nine-month low amid the government's efforts, including hiking interest rates and bank's reserve requirement ratio, to curb soaring prices.

Peng Wensheng, an economist with the China International Capital Corporation (CICC), said a sharp slowdown was unlikely, as overseas demand would not shrink to the level seen during the global financial crisis.

The gradual appreciation of the yuan also helped boost imports.

EU remains China's biggest trading partner with $218.01 billion worth of trade in the first five months, up 22.9 percent year-on-year.

Trade with the United States climbed 22.3 percent to $169.52 billion during the period while that with ASEAN (Association of Southeast Asian Nations) countries jumped 26 percent to $140.82 billion.

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