China posts record trade surplus

Imports, by contrast, fell 1.6% on the year, missing forecasts of a 3% increase, reflecting in part lower prices for the commodities that fuel its economy. Over the first seven months of the year, China has imported 18% more iron ore for steelmaking, but the average price for it has fallen 15%. Likewise coal imports fell 2.2% by volume, at an average price down 15% from a year ago. Analysts said that an ongoing probe into commodity-backed loan deals also probably depressed import volumes. As a result, China’s trade surplus hit $47.3 billion in July, up from $31.6 billion in June. Economist had forecast a slight narrowing to $28 billion. The figures are the latest to suggest that the government succeeded in stopping a slowdown caused reversing–at least temporarily–its declared strategy of rebalancing the economy, downgrading exports and focusing more on domestic consumption.