China's trade surplus to decline to $150 billion

BEIJING: China's trade surplus would fall to about USD 150 billion in the light of steady fall in exports and rise in imports, a news report said today.

The world's second-largest economy has already seen its trade surplus decrease this year and the annual total could shrink by around USD 30 billion from last year if the downward trend of exports continues, Shen Danyang, the spokesman of the Chinese Commerce Ministry, told state-run news agency Xinhua.

The trade surplus is expected to decrease to approximately USD 150 this year, he told the media here while attributing the surplus drop to the government's efforts to promote trade balance by giving boost to imports.

China's foreign trade may reach USD 3.6-3.7 trillion this year, up from nearly USD 3 trillion in 2010, Shen said.

Foreign trade in October fell 8.3 per cent from September to USD 297.95 billion, but still rose 21.6 per cent year-on-year, according to the official data.

Shen predicted that annual imports will rise by USD 360 billion, which will contribute to the global economic growth. The government will keep expanding imports, he said.

China's trade surplus fell 36.5 per cent year-on-year to USD 17.03 billion in October, far below the expected figure of USD 25.8 billion.

Meanwhile, China continues to attract good FDI inflows which touched USD 95.01 billion so far this year, which is 15.86 per cent increase year-on-year, Shen said.