http://www.iht.com/articles/2008/10/...ss/exports.php
Difficulties among Chinese exporters may seem incongruous, given that China announced Monday that its exports were 21.5 percent higher in September than they were a year earlier, and given a record monthly trade surplus of $29.3 billion.
But like most countries, China reports its international trade statistics in dollars. Half the increase in the value of exports last month reflected the appreciation of the Chinese currency over the past year against the dollar. The Chinese currency, known as the yuan or renminbi, rose steadily until mid-June, when the Chinese government abruptly halted the appreciation on concerns that the competitiveness of Chinese exports in foreign markets was eroding.
Most or all of the rest of the rise in Chinese exports last month reflected inflation within China. While China has not yet released its producer price index for September, data for August show that when adjusted for both inflation and currency appreciation, Chinese exports actually fell 0.5 percent from a year earlier.
Exports recorded in August and September represent orders placed months ago. The gloom among suppliers at the Canton Fair on Wednesday suggests that shipments will slow further in the months to come.
