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.
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