China's trade surplus narrowed 12.6% to around $160 billion in 2011, the commerce minister said today, as the world's number two economy was hit by weaker demand from key export markets.
The drop from a 2010 trade surplus of $183 billion came after a year of economic turmoil that has seen a rebound in the US and Europe slow down sharply.
Commerce Minister Chen Deming said total trade volume - imports and exports combined - rose by over 20% to $3.6 trillion last year, according to the official Xinhua News Agency, which gave no breakdown.
Analysts said the shrinking surplus in 2011 from 2010 was in line with expectations as export growth clearly slowed. China's export growth fell from 31% in 2010 to an annual rate of 21% in the January-November period of 2011.
The trade surplus has become a political hot topic as the US and other countries claim Beijing keeps its yuan currency artificially low to boost exports. US officials have long accused China of deliberately pursuing a weak currency, fuelling a flow of cheap exports that helped send the US trade deficit with China to more than $270 billion in 2010.
Chinese leaders have pledged to boost domestic demand to counter weakening overseas demand for its exports, a key driver of the country's economy. Chen said last month China would move to "stabilise" its exports in 2012.
A Chinese government researcher also said last month that export growth would slow sharply this year, which could drag gross domestic product expansion below 9% for the first time in more than a decade.
In a bid to boost growth and counter the slowdowns in Europe and the US, authorities in December cut the amount of money banks must hold in reserve for the first time in three years.
The US Treasury said last month that China's yuan is still significantly undervalued, although it refrained from saying it manipulates the currency, which could lead to retaliatory action by Congress. China defends its exchange rate regime, saying it is moving gradually to make the yuan more flexible.
