China posts record surplus as exports rise

China's trade surplus climbed to a record in August as exports rose on the back of increased shipments to the US and Europe, while imports fell for a second month as a property slump hurt domestic demand. Exports increased 9.4 per cent from a year earlier, the Beijing-based customs administration said on Monday, compared with the nine per cent median estimate in a Bloomberg survey. Imports unexpectedly dropped 2.4 per cent, leaving a trade surplus of $49.8 billion. Sustaining export gains may also be challenging because geopolitical risks are weighing on Europe's economic outlook, said Shen, who formerly worked at the European Central Bank. The increase in exports follows a previously reported 14.5 per cent jump in July and compares with analysts' estimates for gains ranging from 4.9 per cent to 17 per cent. The median projection for imports was a 3 per cent increase, after a 1.6 per cent drop in July, and the trade surplus was forecast at $40 billion, following a previous record of $47.3 billion in July.