However, since China's trade surplus recorded a new high in 2006 and triggered increasing trade disputes, the country had no option but to address the problem.

Determined as the central government is this year, the real challenge is how to cut the surplus?

There are two major ways to cut the surplus restrict exports and enlarge imports.

The commerce ministry said exports should now no longer be the standard to gauge the achievements of local governments or officials.

Officials in the costal provinces, where the economy relies highly on exports, are worried the restriction on exports will hurt economic growth.

They wondered if they would be able to guarantee the tax income, employment, and economic growth.

The central government wants to reduce the export of products that call for high-energy consumption and are resource-intensive.

In a move to restrict these exports, China scrapped or cut the tax rebate for some categories.

Increasing imports is, to some experts, the best way to cut China's widening trade surplus because in their view, import growth drives economic growth.

Bo said the country should now attach equal importance to imports as it had to exports in the past decades.

But the question arises: "What does China need to import?"

China not only enjoys comparative advantages in labor-intensive manufacturing but also its manufacture of machinery is of a high standard, said Zhao Yumin, an expert at the commerce ministry research institute.

"China, therefore, is expected to import more technology and key equipment from developed trade partners, such as the United States," she said.

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