Spending could ease surplus: Experts

China could reduce its overall trade surplus by lowering the national saving rate and reforming taxation to encourage domestic consumption, President of the US National Bureau of Economic Research Martin Feldstein said.

China's national saving rate is more than 40 percent of its GDP. Reducing the saving rate by increasing both household consumption and the level of government spending on public health and education programs would help China reduce dependence on foreign demand, Feldstein, who is also a professor of economics at Harvard University, said in a paper to the China Development High-Level Forum.

China's trade surplus stood at $262 billion last year. Although the growth rate is set to lose momentum this year because of the global economic slowdown and China's policy of reducing dependence on foreign demand, the volume could still hover around $300 billion this year, analysts said.