labels: economy - general, trade
India becomes China''s 10th largest trading partner news
13 February 2007

Mumbai: India replace Canada to become China''s 10th-largest trading partner in January this year, as the monthly two-way India- China trade zoomed 63 per cent to $2.63 billion for the month, latest data from Chinese customs show.

Canada-China trade volume stood at $2.23 billion in January this year against India-China trade volume of $2.63 billion.

Chinese exports to India shot up by 63.23 per cent to $14.58 billion while Indian exports to China grew by a mere 7.05 per cent to $10.46 billion, Chinese customs statistics showed.

The European Union, United States and Japan remained the top three trading partners of China during the period, with bilateral trade volume of $26.46 billion (up 37.9 per cent), $23.43 billion (up 27.8 per cent) and $17.51 billion (up 26.5 per cent) respectively, the figures showed.

China''s trade surplus stood at $15.9 billion in January as exports gained during most of the 17 months, adding pressure on the yuan. The gap, however, was lower from the previous month''s $21 billion. China''s trade surpluses are typically highest in the fourth quarter and smallest in the first three months of the year.

China''s exports rose 33 per cent from a year earlier while imports jumped 27.5 per cent, more than double December''s gain, on purchases of industrial products including automobiles and machinery.

The G7 industrial nations singled out China for its currency policy for criticism at the weekend, calling for larger moves against the currencies of trading partners.

The G7, especially the US, argue that China is keeping the yuan weak to make its products cheap. The export boom is flooding the financial system with cash, hindering Chinese government''s efforts to reign in investment bubbles and rising inflation.

The yuan, meanwhile, declined 0.12 per cent to 7.7568 against the dollar in the evening trade in Shanghai. The currency has climbed 4.3 per cent against the US dollar since China scrapped a decade-long peg in July 2005.

China is planning to cut some import tariffs and export rebates, Fu Ziying, the assistant minister of commerce, said last month. The country last year reduced incentives for overseas shipments of steel and textiles.

China''s trade gap widened to a record $177.5 billion in 2006 and pushed the nation''s foreign currency reserves to more than $1 trillion.


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India becomes China''s 10th largest trading partner