China’s trade surplus shrinks to the smallest in six years

There's little doubt that growth is slowing for the world's second largest economy, and the newest numbers on China's trade surplus underscore that point.

Data released on Friday showed import and export growth had slowed significantly in 2011 making for the country's smallest trade surplus in six years. And while China's trade partners — particularly the United States — might cheer that news, the numbers also indicate that China's domestic demand is declining as well, as evidenced by a big dip in imports in December. Add those factors to an overall slide in production and manufacturing and it's clear that China will face more challenges in the months to come.

China's trade surplus has been a politically dicey issue for US-China relations and has become a political focal point. Beijing has pledged to do more to bridge the gap, but scaling back the trade surplus lies in growing domestic consumption. The trade gap shrunk from $155.14 billion from $181.51 billion in 2010, according to the new numbers.

Do you support journalism that strengthens our democracy?

At The World, we believe strongly that human-centered journalism is at the heart of an informed public and a strong democracy. We see democracy and journalism as two sides of the same coin. If you care about one, it is imperative to care about the other.

Every day, our nonprofit newsroom seeks to inform and empower listeners and hold the powerful accountable. Neither would be possible without the support of listeners like you. If you believe in our work, will you give today? We need your help now more than ever!