The trade surplus hit US$15.88 billion in January, piling
pressure on the government which has made it a priority this year
to reduce the imbalance.
The figure was a 65 percent rise year-on-year, although it
dropped markedly from US$21 billion in December, according to the
General Administration of Customs.
Officials attributed the year-on-year increase to seasonal
factors and because Spring Festival, which sees considerably less
trading businesses, was in January last year.
The government has taken a series of measures to stop the
surplus from widening. It has not only prohibited processing trade
and scrapped export tax rebates in some high-pollution and energy
consuming sectors, but also provided tax rebates to imports of
parts and materials for key equipment.
The impact of these measures is expected to gradually
materialize this year.
The increasing surplus has resulted in a testy relationship with
some key trading partners such as the United States and the EU.
Washington has filed a complaint to the World Trade Organization
claiming that the Chinese government grants industrial subsidies to
exporters.
"I don't think the surplus will sharply decline this year, say
by 50 percent," said Mei Xinyu, a trade expert at the Chinese
Academy of International Trade and Economic Cooperation.
But that does not mean China's attempts to cut the surplus are
futile.
"The surplus would have been even bigger without these efforts,"
he said.
He added that some local governments still regard export growth
and foreign investment inflows as major criteria to measure
achievements, which counteract the policies of the central
government.
Total trade volume reached US$157.36 billion last month, up 30.5
percent year-on-year. Imports rose 27.5 percent to US$70.74
billion, and exports increased 33 percent to US$86.62 billion.
The European Union, the United States and Japan remain the top
three trade partners of the country while India surpassed Canada to
become the 10th biggest.
Processing trade increased 25.7 percent year-on-year to US$70.7
billion while general trade increased 33.2 percent to US$71.12
billion.
(China Daily February 13, 2007)