Surge in China's exports pushes trade surplus to record high in February

China's exports surged in February, pushing the country's trade balance to a record high. Exports jumped more than 48% from the previous year in February, markedly overshooting median analysts' forecast for a 14% increase. Coupled with January, overseas shipments soared 15% from a year-ago period, up from a 6.1% annual gain in the whole of 2014 as demand from major markets rose. Beijing, meanwhile, is targeting a 6% rise in trade for 2015. An accelerating growth in the US helped underpin China's economy as it seeks to lower excess capacity and focus on domestic consumption rather than infrastructure spending. In February, exports to the US, China's top export market, advanced 48.5% from a year earlier but dropped slightly from January. 

Yet, the data painted a mixed picture for the world's second biggest economy, as imports extended a slide amid weak Chinese demand and slowing economic growth. China's imports plunged 20.2% in the January-February period from a year earlier. Imports have been weaker than exports, highlighting the need to boost domestic demand amid fears of deflation, as some short-term investors pull out of the country, reflected by sustained capital outflows in recent months. In February, China posted a $60.6 billion trade surplus, up from January's record of $60 billion.