Related: China reports trade surplus of $10.46b in April

    BEIJING, May 13 -- 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.

(Source: China Daily)