China Trade Surplus Widens, Producer Prices Increase

[B]One the economic front, China?s trade surplus widened by an incredible 63 percent in the month of April, widening to $16.9 billion. The figure toppled analysts? esimates of $15 billion and adds to an already outstanding surplus for the first four months of the year. Currently the surplus stands $63.3 billion wide, 88 percent higher than a year ago. Unfortuantely, as good as the data is, the report will likely stand as a considerable weight on Chinese officials, in particular ahead of the strategic summit at the end of this month. Recent cases of jawboning and complaints have been mounting on the side of US congressmen lately, making the situation worse off. Subsequently, producer prices in the economy rose at a 2.9 percent annualized rate. The figure is of concern to central bankers as fears loom the effects may trickle down to the consumer. [/B]