China records a 44 per cent increase in June exports

China on Saturday reported a 43.9-per-cent increase year-on-year in June exports, signalling a continued demand for cheap goods despite ongoing economic difficulties in Europe and the US.

Shipped goods for the month totalled 137.4 billion dollars, the General Administration of Customs said on its website.

Total exports for January to June totalled 705.09 billion dollars, up 35.2 per cent from the same period in 2009.

The trade surplus was 20.02 billion dollars in June, compared to 19.53 billion dollars posted in May.

China had recorded its first trade deficit for six years in March.

Imports were up 34.1 per cent year-on-year in June, to 117.37 billion dollars, marking a slowdown from a 48.3-per-cent rise in May.

The new figures were released after China’s central bank pledged to loosen currency controls in mid-June.

The move was welcomed by trading partners who argued that the price of Chinese exports was being kept artificially low by the undervalued yuan.

But analysts said the impact on trade will be slow to manifest.