China Trade Surge Dispels Growth Fears

China’s imports and exports both surged by nearly 50 percent in May over a year earlier in a positive sign for growth in the third-largest economy.

Exports rose 48.5 percent in May, while imports were up 48.3 percent, the Chinese customs agency reported Thursday.

The data might help to temper concerns that China’s economy may slow due to the European debt crisis and lending curbs imposed by Beijing to cool surging housing prices.

The strong export growth also might help clear the way for the government to allow China’s currency, the yuan to rise. The yuan has been held steady against the dollar since late 2008 to help exporters compete amid weak demand but Washington and other trading partners want Beijing to ease its controls, which they say are distorting trade.

Import growth eased slightly from April’s 49.7 percent surge, but the expansion in exports accelerated from April’s 30.5 percent level.

AP BEIJING