China is experiencing a high trading surplus

China’s trade surplus noted unexpected increase – the highest of the last 18th months – as exports record extremely high levels in July, increasing the pressure on Prime Minister Wen Jiabao to allow faster revaluation of the country’s currency, the yuan. The surplus rose 170% compared to last year reaching to 28.7 billion dollars, according to Customs’s officials of the country, exceeding analysts forecasts. Exports grew by 38.1% reaching 145.5 billion dollars and imports rose as well by 22.7% reaching 116.8 billion dollars according to data published to the website of the China’s National Statistical Agency.

China’s currency has revaluated less than 1% compared to the U.S. dollar since June 19th when China Central Bank stated by a press release that will allow market forces to play a greater role in the value of the national currency.

Last year’s increase in exports – which made China the largest exporter in the world as the country pushed Germany to the second spot – reached 43.9% in June. The export growth last month was greater than the initial financial analysts’ estimations. The trade surplus is at the highest level since January 2009. China’s trade surplus with the U.S. increased to 93 billion dollars in the first five months of 2010, according to the U.S. Department of Commerce. Chinese Customs estimate the trade surplus to 59.4 billion dollars, 18% higher than last year.