China achieves record trade surplus in May, analysts see more pressures from US on yuan
Pushed by strong worldwide demand for Chinese-made clothes and consumer electronics, China once again saw a surge of 48.5 percent on its exports in May, seemingly showing signs that the eurozone crisis has yet to dampen the ever-present hunger for the affordable China export products.
Analysts are predicting that the development could spur more calls for Beijing to strengthen its currency while on the other hand cancelling out earlier fears that the world's third largest economy is headed for a slowdown or overheating.
The new data were made available amidst threats from US lawmakers on Wednesday to initiate legislative measures that would chastise Beijing for its refusal to allow the yuan to assume its true value.
Washington has been accusing China of undervaluing its currency to gain undue advantage for its cheap export products.
China recorded a trade surplus of $US19.53 billion in May, coming from a surplus of $US1.68 billion in April, and gained an export total of $US131.8 billion in the same month while imports went up by as much as $US112.2 billion.
Royal Bank of Canada's Brian Jackson said that such positive developments would not escape the eyes of the United States and with its unemployment rate still tied to about 10 percent while Chinese exports reached a near 50 percent growth, "it is likely that the rhetoric on this issue coming out of Washington will soon get more heated."
Chinese President Hu Jintao has been adamant on his country's stand to stand firm on its currency policy and declared last month that "Beijing would adjust its exchange rate policy at its own pace, under the principle of independent decision-making, controllability and gradual progress."
However, China is poised to receive more pressure once the G20 summit in Canada gets underway this month with US President Barack Obama getting more calls from the US Congress to deal with China in a more effective way.
Democratic Senator Charles Schumer said that the US Congress is ready "to move forward with legislation to provide specific consequences for countries that fail to adopt appropriate policy to eliminate currency misalignment."
Since the mid-part of 2008, Beijing has pegged the yuan at 6.8 dollar in its attempt to protect the country's exporters and minimise job losses during the global financial crisis.