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Trade Surplus May Hit US$130b in 2006: Official
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China's trade surplus may hit a new high of between US$120 billion and US$130 billion in 2006, Bi Jingquan, the deputy head of the National Development and Reform Commission (NDRC) has estimated.

Bi was quoted by Monday's China Securities Journal as saying the huge trade surplus is a direct result of the fiscal and tax policies.

China should improve its policies concerning tax rebates for exports and processing trade, Bi said at an international symposium on the reform of China's public fiscal policy held in Beijing at the weekend.

According to figures from the General Administration of Customs, China had a record trade surplus of 101.8 billion dollars in 2005, the twelfth consecutive year in which China posted a trade surplus.

The huge trade surplus has led to increased trade disputes between China and its main trade partners and vociferous calls for the appreciation of the Chinese yuan.

A new surplus high in 2006 will bring even greater challenges to the exchange rate of the yuan, the report said.

(Xinhua News Agency June 27, 2006)

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