China's April trade surplus jumps

China reported an unexpectedly large April trade surplus, likely fuelling United States pressure over currency controls and market access as American and Chinese officials hold high-level talks in Washington.

China's global trade surplus widened to US$11.4 billion as import growth fell amid government efforts to cool an overheated economy and exports rose by nearly 30 per cent, data showed Tuesday.

The gap exceeded private-sector forecasts of US$5 billion to US$10 billion and was a strong rebound after China reported a rare trade deficit in the first quarter of this year.

China's trade gap has angered Washington and other trading partners who blame currency controls and other policies they say are hampering trade and a global recovery.

At the start of two days of talks in Washington, US Treasury Secretary Timothy Geithner pressed China's envoys Monday to allow its yuan to rise faster against the dollar.

That might help to boost Chinese imports, narrowing the American trade surplus with China, which hit an all-time high last year.

Policy change needed

China's commerce minister, Chen Deming, responded that yuan appreciation was being carried out in a "very healthy manner".

He said the United States needed to change its policies on high-tech sales and investment to spur American manufacturing.

Beijing has allowed the yuan to rise about 5 per cent against the dollar since it promised more exchange-rate flexibility last June, but American manufacturers and others say the currency still is undervalued.

The yuan's link to the dollar means it has declined against the euro as the American currency weakened over the past year.

China's April trade surplus with the US rose 52 per cent over a year ago to US$15.1 billion. The gap with the European Union, China's biggest trading partner, narrowed slightly to a still large US$10.3 billion.

China recorded a trade deficit for the first three months of 2011 and a surplus of just US$140 million for March.

- AP