China's August trade surplus hits monthly record

China's yawning trade surplus rose to a monthly record high of $28.7 billion in August as the gap with the United States and Europe widened despite a global economic slowdown, according to data reported Wednesday.

The figures were likely to fuel demands by the United States and the 27-nation European Union for Beijing to ease trade barriers and currency controls.

China's global trade gap in August was 14.9 percent wider than the same month last year, the nation's customs agency reported. The previous monthly high was $27 billion in October 2007.

Exports rose 21.1 percent to $134.9 billion, while imports were up 23.1 to $106.18 billion, the agency said.

The trade surplus with the United States grew 16.6 percent to $17.5 billion during August, the agency reported. The gap with the 27-nation European Union, China's biggest trading partner, swelled 25 percent to $16 billion.

Standard Chartered economist Stephen Green cautioned that Chinese exporters could face tougher times ahead as European growth slows.

"The golden times are certainly over, and many firms are suffering, but from a macro-perspective it is still remarkable that real export growth has stabilized over the summer," Green wrote in a report to clients. "As Europe now slows, though — the biggest destination for exports — this will change in the last few months of the year. This may well be the lull before the storm."

Some U.S. lawmakers are calling for punitive tariffs on Chinese goods if Beijing fails to act on market access and currency.

The intensity of debate has eased as Americans focus on Iraq and the credit crisis during the U.S. presidential race, but lawmakers are expected to renew their focus on the issue once a new Congress takes office in January.

The European Union Chamber of Commerce in China complained in a report this week that China is hampering imports and investment. The group's president told reporters that Chinese trade barriers are "getting more sophisticated."

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Chinese customs agency: http://www.customs.gov.cn

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