China's exports up 20.4 % in July

China's exports rose 20.4 per cent year-on-year in July as growth in its overall trade accelerated despite a gloomy global economic situation.

China's exports touched $175.128 billion, the General Administration of Customs (GAC) said today.

Imports grew by 22.9 per cent, resulting in a trade surplus of $31.5 billion (£19.3 billion), up from $22.3 billion in the previous month.

Many in the US, especially exporters, hold the view that the Chinese currency is undervalued, which makes Chinese goods highly competitive in world markets.

According to analysts, today's traded data showed that Chinese exporters continued to benefit from a supportive exchange rate and the big surplus will add further pressure on China to allow its currency to appreciate further.

China's central bank today said that it is determined to appreciate the value of the yuan, or renminbi, against the US dollar with an aim to reduce hot money inflows that are creating inflationary bubbles in the world's second largest economy.

The country's central bank, People's Bank of China, set the official medium trading price at 6.4167 yuan per US dollar on Wednesday, a new high of the Chinese currency against the greenback since Beijing embarked on the yuan's revaluation in July 2005.

Wednesday's surge marks a hefty rise of 168 basic points from Tuesday's 6.4335 yuan trading a dollar.