China: Second Largest Monthly Trade Surplus Recorded

China has posted its second-biggest trade surplus in July.

This proves massive competitiveness of Chinese exports sector and government policies to control investment, which are dampening imports, said economists.

The $10.4 billion surplus in July took the cumulative total for the first seven months up $50 billion, dwarfing the surplus of $32 billion, last year.

China's trade relations with the United States and the European Union have strained since the decades-old system of quotas on developing countries' textile exports expired year, begining.

U.S. and Chinese officials will hold talks on textile trade next week in San Francisco, the latest in a series of consultations, required under world trade rules due to the U.S. sanctions.

However, a minor revaluation of the Yuan, ought eventually to reduce China's trade surplus.

The State Information Center, a top economic think-tank, expects the surplus in the second half of this year to narrow to about $30 billion from $39.7 billion in the first half.

But the initial impact will be to make imports more expensive, which could widen the trade surplus.

China recorded its largest monthly trade surplus of $11.1 billion in last December.

July exports climbed 28.7 percent comparing the same period of last year, while imports were up 12.7 percent.