11 Dec 2010

November exports by China up 34.9%

12:02 pm on 11 December 2010

China has reported stronger than expected export growth in November.

Exports were up 34.9% versus a year earlier, compared with an expected 25%. In October the increase was 22.9%.

Imports also rose rapidly, by 37.7%, but not enough to stop the country's trade surplus widening by 15% from a year ago to almost $US23 billion.

November's inflation figure is to be released on Saturday.

October's inflation figure was 4.4% - well above the official inflation target of 3%.

The BBC reports rising inflation prompted the People's Bank of China to increase the amount of cash that banks are required to keep on deposit with the central bank on Friday for the sixth time this year.

The higher reserve requirement will limit their ability to make new loans, slowing the economy.

The bank has already raised interest rates and increased reserve requirements several times in a bid to cool inflation.

The government has taken emergency measures to address exceptional price rises and shortages of some foods.