China's multibillion-dollar trade surplus narrowed in December for a second straight month, suggesting measures meant to slow its rapid growth might be taking effect, according to government data released Friday, according to AP. Despite the possible slowdown, the full-year surplus for 2007 soared nearly 50 percent to a new high, adding to pressure for Beijing to take action over currency controls and import barriers. December's monthly surplus was US$22.7 billion, down from US$26.3 billion in November and October's all-time high of US$27 billion, the General Administration of Customs said. That came as U.S. retail spending weakened, Beijing imposed export curbs on steel and some other goods and Chinese exporters were hit by a series of warnings and recalls of goods including toothpaste, seafood and toys. «For 2008, we see things slowing down,» Standard Chartered economist Stephen Green said in a report to clients. Still, Green said that although he expected to see slower growth in the «mother of all trade surpluses,» it should hit a new record high again this year. China's trade surplus with the United States, an irritant in relations with Washington, rose in December to US$13.6 billion, just 1 percent over the same month in 2006. China's full-year surplus with the United States expanded 19 percent to US$163.3 billion. The United States reported a US$232.5 billion trade deficit with China in 2006 and last year's gap is on track to pass that. The two governments count trade data differently, leading to differing totals. Washington says China keeps its currency, the yuan, undervalued and gives Chinese exporters an unfair price advantage, which adds to the trade surplus. Beijing has allowed the yuan to rise gradually against the U.S. dollar, but the United States is pressing for faster action and some lawmakers are calling for trade sanctions. China's sustained high trade surpluses, which send a flood of cash coursing through the fast-growing economy, have strained the government's ability to contain pressure for prices to rise.
