China's monthly trade surplus fell slightly in April to US$10.46 billion from
March's US$11.2 billion, according to the General Administration of Customs.
The figure is still higher than the country's major trade partners expected
and more than double the trade surplus of last April, the customs office
reported on Friday.
The statistics show exports rose 23.9 per cent in April from a year earlier
to US$76.95 billion, while imports rose 15.3 per cent year on year to US$66.49
billion.
In 2005, China's trade surplus more than tripled compared to the year before,
reaching US$101.9 billion.
This has led to concern among trade partners.
The trade surplus with the United States widened to more than US$100 billion.
Although the United States said the Chinese Government should make its
currency exchange rate more flexible to reduce the trade imbalance, Chinese
Commerce Minister Bo Xilai argued US restrictions on high-technology exports to
China were a major reason for China's growing trade surplus with the United
States.
Bo said US technology exports to China had been growing only half as fast as
similar exports from the European Union.
Despite the continuous growth in China's trade surplus over the past months,
economists still expect the figure to fall this year.
"There is little probability that the trade surplus this year will exceed the
2005 level," said Li Yushi, vice-president of the Research Institute of Foreign
Trade and Economic Co-operation, a think tank under the Ministry of Commerce.
He predicted the country would limit the trade surplus to within US$50
billion this year on the back of changes in its export policy and rising
domestic investment.
The continuous growth in the trade surplus has resulted from a global shift
in manufacturing, said Li.
He expected domestic investment and consumption would increase steadily this
year, with the demand for imports of energy, raw materials and machinery
increasing.
And as the government is encouraging innovation, imports of advanced
technology and equipment are expected to increase.
Li said all this would help reduce the country's trade imbalance.
As about half the country's exports are the result of foreign-invested
enterprises, a decline in foreign investment would affect China's trade surplus.
According to statistics from the commerce ministry, China's realized foreign
direct investment (FDI) dipped 0.5 per cent year on year to US$60.33 billion
last year.
This excludes investment in banking, insurance and the securities sectors,
but is the first year that FDI has fallen in China since 1999.
Experts said China's FDI level this year would remain at about last year's
level.
The Chinese Government is making an effort to reduce trade imbalances so as
to appease trade partners.
Measures include slashing or scrapping tax refunds for some export
commodities and levying export duties on others.
Officials said these measures have had some effect.