China’s trade surplus surged again in October to $27.1bn, the second highest level so far this year, putting new pressure on Beijing over its currency policy ahead of the G20 summit.
The October trade surplus increased from $16.9bn the month before and is one of the largest recorded by China in a single month, raising questions about the pace of rebalancing.
Although economists said that seasonal factors had exaggerated the size of the trade surplus last month, the increase will give ammunition to those governments at the G20 that want China to accelerate the pace of appreciation of its currency. China has, in turn, heavily criticised the new round of quantitative easing by the US Federal Reserve and announced on Wednesday it was raising bank reserve requirements by 0.5 percentage points, amid concerns about rising inflation.