China posted a record trade surplus of $26.9 billion in June as exporters rushed shipments ahead of tax rebate cuts.
The result, which easily surpassed economists' expectations of a $24 billion surplus, was much higher than the previous monthly record of $23.8 billion, set last October and backed critics who say Beijing's weak currency gives it an unfair trade advantage.
Economists said the surge was due at least in part to firms seeking to fill orders before July 1st, when value-added tax rebates on more than 2,800 export products were either reduced or scrapped as part of Beijing's efforts to trim the surplus.
But analysts also noted that the most recent result was in line with a series of large monthly surpluses so far this year. The overall surplus for the first six months came to $112.5 billion, 83 per cent more than in the same period last year.
The United States, one of the harshest critics of China's yuan policy, accounted for about two-thirds of the figure.
In addition to the recent cuts in tax rebates, authorities have imposed new tariffs on products whose exports they want to discourage. In an effort to curb capital inflows resulting from the booming trade surplus, they have also stopped providing incentives to firms to remit their forex earnings.
But there is mounting pressure, particularly from Washington, for Beijing to do more to let the yuan appreciate further to end what many critics say is an unfair trade advantage.