China's Ministry of Commerce said the country's exports are feeling the pinch. This is due to global economic uncertainties, weak demand and growing trade friction. A spokesman for the ministry cited the latest trade figures as evidence that China's currency was not undervalued.

China's foreign trade growth dropped 12 percentage points over last year, but still rose 24.3 percent year on year to over $297 billion in the first ten months. Import growth dropped to just under 27 percent, while export growth has fallen steadily, hitting just below 16 percent in October. That was down from this year's peak of 36 percent in March.

"China's trade surplus is likely to narrow to $150 billion this year," said Shen Danyang, the spokesman of Ministry of Commerce. The shrinking surplus, according to Shen, is evidence that China is rebalancing towards domestic demand. He also rejects calls for faster yuan appreciation.

Shen also said that the Yuan's appreciation is not the main reason for the U.S. trade deficit. He added that the U.S. should relax export restrictions to China to help further balance bilateral trade.

(CNTV.cn November 16, 2011)