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REPEAT: MNI 5 Things: China Surplus Widens As Exports Jump

By Flora Guo
     BEIJING (MNI)  - China's General Administration of Customs announced the
latest trade statistics on Thursday. Below are five things we learnt from the
release:
     - Exports surprise by beating the market consensus, increasing at 44.5%
y/y, compared with MNI's survey of 12.7% growth - this marks the 12th
consecutive month of growth, and is the highest growth recorded since February
2015. Total exports, on the other hand, are down 14.5% m/m, in line with
historical data (mentioned in Wednesday's "MNI 5 THINGS: China Feb Trade May
Show Deficit, Lower Imports"). 
     - Trade balance expanded to USD33.74 billion from January's USD20.57
billion, the second largest surplus in February in the last decade - instead of
the deficit predicted by analysts surveyed. 
     - Imports growth eased to 6.3% y/y from a previous 11-month high of 36.8%
y/y, to USD137.88 billion. This downturn momentum was reflected in the MNI
survey, which showed imports growth at 9.3%.  
     - Trade with the EU, the U.S., ASEAN and Japan, which in total account for
nearly half of China's trade, have all increased, by 17.2%, 15.8%, 22.7% and
6.1% respectively. Trade with countries aligned with the Belt and Road
Initiative stands at CNY1.26 trillion, rising 21.9% - 5.2 percentage points
higher than the average growth of China's trade. 
     - Trade with the U.S. amounted to USD95.87 billion in the first two months.
Exports to the U.S. rose by 26.6% y/y while imports rose 12.0% y/y. The U.S. is
therefore still one of China's most important trade partners. "The competition
between China and the U.S., if there is one, should be benign and
active...competition is allowed, but partnership is more necessary," said Wang
Yi, minister of China Foreign Ministry at Thursday's press conference, in
response to concerns of a trade war. "The trade war will only result in injury
to both sides, and China will need to respond accordingly," Wang also warned. 
--MNI Sydney Bureau; tel: +61 2-9716-5467; email: sophia.rodrigues@marketnews.com
[TOPICS: M$A$$$,M$Q$$$,MC$$$$,MI$$$$]

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