Official figures show that China's trade surplus surged to $28.7 billion in July as exports hit a record high. The figures could intensify pressure on the country's authorities to allow its currency to strengthen.
China posted its biggest trade surplus since January 2009 as the value of China's overseas shipments reached a monthly record $145.52 billion in July despite slower export growth.
The data suggested China had so far seen little impact from the European debt crisis and weak recovery in the US, as consumers continued to snap up Chinese-made televisions, T-shirts and leather shoes.
July's trade surplus compared with a surplus of just over $20 billion in June and surpassed analysts' expectations. It also marked a sharp turnaround from March, when the country recorded a trade deficit.
Exports in July grew 38% from the same period a year ago but slower than in June, when they were up 43.9%. China warned last month that exports would slow in the second half of this year due to uncertainties overseas.
Analysts said China was likely to resist any outside pressure to let the Chinese yuan strengthen too quickly against the dollar, using the slowdown in export growth as their justification.
China pledged in mid-June to let the yuan trade more freely against the dollar, though it ruled out sharp fluctuations in the value of the currency. Since then, the yuan has gained less than 1% against the dollar, angering US politicians and other critics who claim the currency is undervalued by as much as 40%, giving Chinese exporters an unfair advantage.
